FoxyKaye said:3) And, completely off topic, every time Apple releases an iPod update, I think the same thing: It wouldn't kill them to update the 1G and 2G software to support Apple Lossless. But, you know, I'm also wishing for a million dollars, too.
The 1G and 2G iPods can't support Apple Lossless. Physically cannot. The chips inside don't have enough cache to load in all the data to decode that format.