...not quite sure what you meant by the 'Pause Bug';

I have seen a mute/pause issue, where mute and pause get out of sync. - ie the player gets muted when playing, and unmuted when paused. Happens very rarely, and fixed (only) by reboot...it could probably be eliminated fairly easily by the empeg guys - currently the (stock) kernel only has a mute_set ioctl, and not a mute_read ioctl, so the player doesn't error-check the mute status when setting it.

Does this play into what you saw??