Just got an iPhone 3G S - Love it - however, when i use the the ipod to listen to music and I receive an e-mail (it gives you a short tone, that you have received a msg) then the song I am listening to either restarts or skips to the next track. Very annoying. Is there a setting to preclude this other than shutting off the phone?

TIA

Obviously that is not normal behavior for any model iPhone. The "standard" fix when you are experiencing problems with your iPhone is to reset it to the factory default and then restore your data.

Connect your iPhone to your computer then in iTunes click on the "Restore" button. This will first backup all your data then reset everything back to the factory default then you can restore your data and hopefully that will fix everything. Don't get it too big a rush, if you have a lot of music it can take a good while to restore it all, so give it time and do not unplug your iPhone until everything is complete.