Podcasts can no longer be resumed

Reset just returns to factory defaults. Doesn’t really do much.

I’d try reloading the firmware.

Check which hardware version your clip is (first digit of firmware under Settings/System Settings/Info)  and get the Version1 or Version 2 firmware from this thread:

http://forums.sandisk.com/t5/Sansa-Clip-Sansa-Clip/Sansa-Clip-Firmware-01-01-35-amp-02-01-35-Release/td-p/144965

Don’t bother with the Updater.

Use the manual method: download the zipped firmware file, unzip it, put the unit in MSC mode (Settings/System Settings/USB Mode/MSC), connect it and drag over the unzipped folder onto the driveletter for CLIP.

If that doesn’t help, other questions:

Have you changed the location of the newer podcasts? Are they still in the Podcasts folder?

And: look at the tag information. Is the genre specified as Podcasts? 

The Sansa gives Podcasts special treatment–the resume function–and it has to know that the files are podcasts and not just music mp3s.