There's no risk to the N900 - it just means that boosting the gain introduces even more distortion into the mix - to a level even beyond the serious amounts already present on the N900 (at least with PR1.3). We're not talking a bit more compared to other typical MP3 players, it's a LOT more. Someone needs to fix pulseaudio or whatever's responsible for this - I'm pretty definite it's not the hardware.