Sound clipping at high volume

Brand new Clip Zip out of the box and connected to Mac. I have found I can drag and drop mp3 files via iTunes window to the Music folder on the Clip. However, on playback when I turn the volume close to maximum settings, the audio clips badly preventing any loud beats  playing at all. If I turn the volume to mid-way the problem goes away. I understand the ‘rest of the World’ and ‘high’ volume setting, but i would not expect reasonably loud audio to clip in this way unless there was a problem with the internal amplifer. I have previously owned a Clip and it didn’t ‘clip’. Anyone else experienced this?

Nope, with a PC and not using iTunes.

Depending on the bit-rate, it could be the files themselves, or maybe you don’t have the headphone plug seated all the way into the jack. Twist it a little while you push on it. The jacks are expecially tight when new, and if the plug is not fully inserted, it can "clip’ with the volume cranked up.