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I like this iPod pretty well and I use it in the car, on the go, and with my home stereo. The sound quality is excellent and the interface is clean and easy to use. It's not easy to navigate large lists of music with a tiny player, and the iPod's strength is its clean interface for doing this.
Apple made sure that you had to use their iTunes program to manage the music on your iPod, unfortunately. I think this is because they want you to buy online music via iTunes. But it would be nice if you could just use the iPod directly, dropping files into it like a hard drive. If you already have a bunch of M3U playlists set up, or have organized your MP3s into a lot of folders, you will have to start over to some degree.
The great thing about the iPod is the accessories you can get for it. I have a car connector, a remote control, and an FM transmitter, and they are all useful for different things. iPod dominates the market and many auto manufacturers are building connectors in. Show me one auto maker who has added a digital connection for another model... there aren't any!
The best thing about the iPod is the size and weight. It's small and feels good in the hand due to its solid construction, smooth corners, and balanced weight. The screen is easy to read, compared to some other teeny screens on other players. It really should have a radio, though. Especially at this price.
Overall, it's one of the best you can buy. Even considering this, the pricetag is still high.