I actually had this happen to me with 1.03 this week. The player froze up, and the only way to solve this was to disconnect the power and have it reboot. This was the first time it happened to me at home, but I've also had it happen to me once or twice in the car.
My player is a "standard" Mk2a 60gig. No modifications have been made and it still runs 1.03.
I did find this strange, however if it only happens once in a while I can live with it.