Well, I don't have an iPod, but I highly recomend checking out the RockBox project if your version supports it (compatable with my h110). It has many cool fetures, such as multipule codec support, cross-fadder, black and white GameBoy emulator, and many other things via a plugin system. Note: some fetures may not work yet on the iPod because that biuld is still quite a beta, but most of the main ones do.

RockBox Homepage
Rockbox iPod Port-Main Page (Download at bottom)
Rockbox iPod Port-Supported Fetures

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