With the new firmware, the "Manual" audio settings do not appear to correctly register to C1, C2, or C3 and therefore does not properly record audio.
You can test it by first having the camera turned OFF, then turn the camera ON while in one of the Custom modes, and then try to record audio set to "Manual" with the recording levels adjusted for decent signal -- the meters will indicate an audio signal, but when you press RECORD, no sound is actually recorded to the CF card.
However, if you turn your Mode dial to M (Manual mode) first and then turn your Mode dial to C1, C2, or C3 it will properly record audio with the Manual setting.
Unfortunately, if you turn your camera OFF again and then turn it ON while in one of the Custom modes, it will not properly record audio with the "Manual" audio setting selected.

Anyone else have this issue with the new firmware 2.0.3?

Thanks,
-- Marc

Mine is working same way.
I am pretty sure that there will be lot of missing audio. :)

No level indicator while recording.
No audio for headphones to follow.

We need ML to correct firmware again...

Just another reason to avoid C1, C2, and C3 in my book. Those settings are more dangerous than a lot of people think, saving every little setting that you may or may not realize. I actually think I am faster without them, and my chances of having the wrong setting are lower, but that's just one man's opinion.

This is kind of a big bug to have missed in the release. Regardless of personal preference (I use C1 - C3 all the time, especially as a way to insure that my basic settings are in place in changing doc and sports stuff) the manual specifies the two instances in which manual audio won't work.

In these instances Canon states that the only "option" will be auto. In other words it's there as an option and is supposed to be recording but it doesn't. I'd imagine a big % of shooters use Custom Settings and without headphone monitoring as Hannu says - there's going to be a lot of missing audio as people start using the new firmware.

We'd be staying with "out of camera" audio anyway but now there's no guide track for Pluraleyes.

Canon?

dustylens came up with this solution-

Reset all your C modes.
Go to M and start setting your C modes with the manual audio on (For each C mode you will need to start in M mode).

Now, when you start up your camera from now on, start on M mode , then switch to your preset C mode (or switch to M then back to your C setting). Manual audio will work. But, if you start your camera on let's say C1 mode, your manual audio will be zeroed.

Thanks for posting this fix Richard.
Although, I originally posted this "solution" in the beginning of this thread (my initial post):

"...if you turn your Mode dial to M (Manual mode) first and then turn your Mode dial to C1, C2, or C3 it will properly record audio with the Manual setting."

dustylens came up with this solution-

Reset all your C modes.
Go to M and start setting your C modes with the manual audio on (For each C mode you will need to start in M mode).

Now, when you start up your camera from now on, start on M mode , then switch to your preset C mode (or switch to M then back to your C setting). Manual audio will work. But, if you start your camera on let's say C1 mode, your manual audio will be zeroed.

He has since amended that saying that in further testing his method failed and he could get no audio with that technique.

Definitely a bug.

My custom setting workflow is a lot more important than in-camera audio. We'll just switch back to auto gain to get a synch track for Pluraleyes.

That was his amended "solution" Jim (he edited his original post).
It is actually almost word-for-word of what I had posted early this morning (the initial post of this thread).
The work around is to turn ON the camera in M mode and then turn the mode dial to your selected Custom mode -- if you turn the camera OFF, you have to start again in M mode (Rinse and Repeat).

Ha Pretty incredible stuff.. I wonder what kind of in-house and field beta testing Canon did.

Lesson learned - their engineers are bad at coming up with test scenarios, and field testers they use are simply bad testers.

Thanks for posting this fix Richard.
Although, I originally posted this "solution" in the beginning of this thread (my initial post):

"...if you turn your Mode dial to M (Manual mode) first and then turn your Mode dial to C1, C2, or C3 it will properly record audio with the Manual setting."

I'm an idiot. Didn't read the whole thread, lol.