I have recently bought my iPod in France. Since I'm not French, I hated the idea of such volume limitation.
I reformatted my iMac with all registration (address) information set to New York. OS language, keyboard... all set to US.
Then reformatted my iPod with updater1.3
I checked out the Device folder, I had a file named 'Limit' with '216' in it and nothing else.
I erased the file and emptied the trash can, unplugged the iPod from the iMac.
I had a monster sound! It would hurt my ears at maximum output.
A friend of mine who purchased his iPod in Japan uses French OS and keyboard and don't have this Limit file.
I hope all this was useful.