it hasnt for me no, but with a pair of headphones i modified it works fine. It doesnt distort the mp3 that bad. I tried it with the iPhone speakers too, but no luck. Those speakers are crap too. i took a pair of sony headphones and removed one side completely so its like a long cord that goes to a small disc (the speaker) and its worked for the ipod and DS.
You ever notice how you have much more control over the sound system in a machine if you use alsa modules? You can pull the volume up higher and such than you could with the basic drivers provided by windows? Its the same deal really, theres an OS for the DS called Moonshell and you can do the same thing with the volume you can turn it up %400 (sounds like crap though unless you have a nice output source.)
Though, i personally think the Moonshell app is ugly and the interface sucks. I like DSOrganize the most.