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Um, I think the iPod would hold more than 1000 notes...all they are is tiny little text files. Even a 1GB should be able to hold more than 1k.
 
I would guess you're right as well. It says " basic version holds up to 1,000 notes, or 1,000 recipes." The operative word is "basic." Can anybody with a 1 GB Nano verify this? Maybe they mean in addition to a ton of music.
 
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