Problem exists on both 2.3.6 Motoblur and Latest Jokersax ICS Kang so I'm not thinking a software issue just yet.
I can play music through the loudspeaker without a problem, how ever, when I plug the headphones in, all I get is massive distorted mess of what is playing (I have to turn the radio/amp up fairly high to be able to hear this)
The phone is detecting the presence of headphones.
Any ideas? Broken socket?