You may be pleased to know that this issue appears to be addressed in Flash CS5.

I just put together a test, and on EnterFrame, displayed the channel.position of the looping clip. The looping was set during channel.play(lastposition, 999);

It resets the position to 0(zero) each time it enters a new loop, so my pause button (which stores the current position) works properly each time I resume.

I like Vladimir's solution. I think the reason you might be getting errors is that each time it loops it adds a listener.

I just added a removeEventListener before before the addEventListener (seems to work)

Although I have not figured out how to change the volume once this loop has started… I think I have tried everything, but if anyone has a tip I would appreciate it.

@others

I have tried the formula -
newPosition = channel.position % sound.length

This has constantly failed for me no matter how I work with it… I still get weird loops. It actually cuts my loops in half each time i pause and start… which after a few times leaves me with a really loud annoying noise.

Unfortunately, I have found another AS3 Sound bug during use your solution. The the SOUND_COMPLETE event gose crazy after call over 4~500 times the snd.play() method. The SOUND_COMPLETE event raises too slow, it raise when flash want.

Do not use repating sound clip (set it to 1) and then add listener to SOUND_COMPLETE where you will play sound from position 0 again).

Below is a function that plays hides this and plays from a given position (so that you can play/pause). This function also preserves current soundTransgorm (i.w., volue and pan).

function playClip(snd:Sound, chn:SoundChannel, pos:Number):void {
chn = snd.play(pos, 1, (chn != null ? chn.soundTransform : null));
chn.addEventListener(Event.SOUND_COMPLETE, function(event:Event):void {playClip(0)});
}

I hope that this helps…

pausePosition = channel.position%this.music.length;