Hey, I can now consider myself in the iPod touch owners' group. First thing I did was updated to 2.0... or tried to, anyway. Had to go through the process 3 times before it finally updated - first time it told me that the iTunes Store terms had changed. Second time it told me that my email address had changed, and I needed to verify it. Third time the transaction finally went through. The update process went smoothly after that. After the iPod touch restarted itself, I was greeted with the not-entirely-unexpected message that my iPod touch and my iTunes library couldn't be synced due to lack of space on the iPod touch. Extra-special thanks go to Cassie for suggesting that I use a bit rate under 128 kbps - I ended up going with 96 kbps AAC, which, in my tests, sounded the same as the original Apple Lossless file, as far as I could tell - and I should get about a 7.5:1 space savings compared to Apple Lossless, which will make my library fit easily (it has 9716 songs and 2 movies). ...anyway, I'm happy about my purchase. I haven't tried the iPod touch's feature set very much yet, but what I have tried thus far I liked. EDIT: As I write this, iTunes is busy converting all 9716 songs to 96 kbps AAC... I'm estimating I've got about 17 hours to go before it's all done.