Biiiiig problem with pictures on Clix Gen1

[phoenixmage]

Alright, I got a 4gb iRiver Clix about two days ago. It's great, I love the interface and music/video playback. HOWEVER, all of the pictures I upload on to it, whether it's syncing them through WMP11 or copying directly through Windows Explorer, are completely screwed up.

The picture is all...pixelated, I guess you would call it. It just turns into a bunch of coloured squares, with a few tiny sections where you can just see the original image. I've tried a bunch of things, looked on several forums, resized the images prior to uploading them (despite the fact that I apparently shouldn't have to), formatted the drive more times than I can count, reinstalled WMP11 twice and tried to update a firmware from 2.0.

Although this yielded a new problem: The latest auto updater said it couldn't find a certain 'file', with a very long name, and refused to acknowledge my Clix's existance! I then tried an earlier version, but it said that I already had the latest firmware, which I find hard to believe.

Anyway, sorry for the long winded complaining, but I'd really like to know whether I should just return this thing and ask for a new one, because even though it plays other things fine, I really don't want a defective mp3 player. It could be a sign of things to come...