Firstly, please try to use real words. "Wat" is spelled "What" and the word "to" is not spelled "2". There are several other similar errors in your post, and our forum posting guidelines explain that we require an attempt be made at proper English. At the very least we require that you use real words.
Q1: This is a hardware limitation of the H120, the line out volume is not controllable seperately. -40dB on the unit just means "40db below the recorded level" and can really be any level depending on the record level of the file, how much you've boosted with bass/treble, and equalizer, and replaygain. Are *all* of your settings reset or do you have any of those in use?
Q2: What exactly are you using to measure the levels?
Q3: Your battery options don't really have anything to do with Rockbox. Just research batteries that fir the 1st and 2nd generation iPods. You'll have to swap the leads because the positive and negative are swapped, but other than that they should work.