EQ is OK, but...
You can't customize it at all.
They are all fixed.
I have over 1200 songs and each CD seems to be at a different volume level (very slight differences, with the exception of much older style music) and almost each CD would require it's own tweaking/equalizing.
I'm hoping that in the future, you could set the EQ and apply those settings to specific songs or CDs.
Don't get me wrong, I LOVE IT!  But I probably won't mess with switching EQ settings too often.
I have tried the Contacts thing and it totally kicks BUTT!!
The clarity and quality is fantastic.
Also the fast forward features and the time remaining/played showing at the same time is great!
I cannot say enough how much I love this thing!  I also noticed that the sleep timer goes up to 120 minutes now.  As I recall, it used to only go up to 60 minutes or so.
THANK YOU APPLE!  Keep it up!
Quark