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I've found the answer to my earphone problem, it seems what ever volume you set in settings as soon as you insert an earphone in the 3.5mm socket by default it halves your setting, however to overcome this while the phones are plugged in press the volume control on the N7 and a box comes up to say increase volume above recommended level? Press OK and slide it up to the desired volume. Job done.
You may have to do this again after reboot, unless you can find a way of disabling the default.