Yes, indeed it is connected to the blue wire on the tuner module. This is an annoying bug. I hope this gets fixed soon. Im sure that I will end up snapping my power antenna off in the car wash, while listening to some mp3s. I do beleive that this should be an option, to have it automatically go down while listening to mp3s. Some people change between radio and player a lot, and this may be a nuisance.

12gig blue MKII w/tuner
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12gig blue MKII w/tuner