IPod app fades and quits playing as iTunes app processes downloaded tracks

at least that appears to be the cause...
I'm downloading a bunch of tracks via the iTunes apps, while listening to the tracks via the iPod app.
After a track is downloaded as the iTunes app is "processing" it the iPod app will fade and then stop playing?!
if you leave it alone, sometime when the next track is "processed" the iPod app will start again?!
I suppose this is some sort of feature?!

I'm having the same issue.  I've only noticed it since the 4.3.1 update.  Every time a song hits the "processing" stage of its download, my music playing from the iPod fades and stops playing. 
The music will sometimes start back up on its own but usually I have to hit play again.  I'm really hoping this is not a new feature as it is somewhat annoying.
Any help would be greatly appreciated.
iPhone 4, iOS 4, 4.3.1

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