Thanks for taking care of this for me. About delay(30*35), It is cause of the time needed for the pam8803 to process a level up or down active low state. 3.5 clock cycles. Each clock cycle is about 30ms. You can read about it here:
http://www.poweranalog.com/pdf/PAM8803.pdf
There is a way to speed up the volume up/down process. 9.5 times + 2 ms for each level. I am planning to go that way to. But for small increments, 105ms don't sound that bad.
I also would love to continue talking about this here:
http://arduino.cc/forum/index.php/topic,133013.0.html
Don't want to go off-topic here.