[300C_AZ]

man SilverBackGorilla, I wish I would have read your post a few days earlier cause I fell into the same trap. Things were great with 1.0.2 and I didn't even think about it but I went ahead and updated my iPod classic to 1.0.3 and got the same reboot issue.
Don't hold your breathe for Apple to "correct" this problem, in fact from what I read on some Apple forums, Apple is trying to prevent the iPod from working with 3rd party accessories (mission accomplished with 1.0.3). I don't know if this is true or not and can't figure out why Apple would do such a thing.
Anyways, I restored my iPod Classic back to 1.0.2 and all is well again.