Peter,
My experience with the i-Pods has all been good. Awhile back we bought an iPod mini for my daughter - she loves it and it's still going strong.
Last Christmas they gave me a 60GB iPod and I put every CD I own on it and then some more. I have videos, TV shows, one movie and a bunch of pictures that I carry instead of the old ones in my wallet. It's still going strong one year later.
This Christmas they gave me the Apple iPod Hi Fi home sound system and it just rocks the room - and it's portable.
Everyone that I know that owns an iPod, about 10 or 12 people, all love the little beasts. But most say the bigger the better.
Bill