Since updating my PodHD300 to the latest firmware, 2.0.1, I've noticed that when playing with no preamp or effects and with the volume on both the guitar and Pod on the highest, the sound can be very distorted; this was never the case before I updated to the latest firmware.

I'm playing it through a VOX VR15. Bass, Mids and Trebles come out fine and I've got the reverb off.

When I play directly from the amp (no pod) I don't get this distortion issue.