Had a H320 with same problem, found solution like this after trying out several things:
- opened H320
- disconnected / removed battery ( ! important !)
- connected external power supply
- started H320: iriver firmware boot sequence completed, display showing "connected" screen
- next step was to solve "always connected problem" as described in old mysticriver-forum :
1. First you need the USB cable that came with the H320.
2. Next take a piece of wire and connect the two outside leads and only the two outside leads.
To connect the pins, plug your USB cable into the H300. You still have the other end which normally connects to the PC. Now look closely at the PC end of the cable and you'll see there is a small hole over each of the outside pins. Stick the wire in there to connect the pins.
- It now said "disconnected" and "check used space"
- I instantly removed external power supply. Player off.
- plugged in external power supply again, kept it plugged in for all following steps.
- booted player to iriver firmware, now it said "charging", although battery is still not connected.
- used a small screwdriver to short out the two pins of the battery connector on player mainboard. Did this only for short time by just tipping on the pins.
- player was off instantly after this
- booted again to iriver firmware. The H320 now worked normally, no "charging" or "connected" screens.
- turned player off and connected battery.
After starting the H320 again, it totally worked as it should.
Of course i can not tell if this procedure will work for you, so try at your own risk.