There's definitely somethin' funky goin' on with the Handset (Ear) speaker on the 700p's!
I've suffered an "intermittent" failing handset speaker problem for months, and never traded the unit in for fear of getting one with worse/more serious problems (my device works pretty much flawlessly aside from the handset speaker issue).
Granted, mine didn't occur while charging/plugged in, but rather most of the time, when being used normally.
Thankfully, the problem mysteriously disappeared about two weeks ago, and has been working fine since doing a "hard reset", necessitated by ZLauncher.
Hope this helps. I'll provide the link below re: my problem, and wish you luck. Hopefully it'll just "start working again", like mine did

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http://www.everythingtreo.com/forum/...-up-11933.html
"Hollywood"
