120 GB iPod Classic showing only 111 GB Capacity

Just check the hard drive in your PC. If it shipped with, say, a 250GB hard drive, Windows will report it as 232GB. There is no "missing" space, there are just two different ways a gigabyte is computed - the "right" way (as reported by computer systems) and the "wrong" way (how vendors market their drives). This is the way ALL hard drives are sold and marketed (and have been for 20 years), not just the iPod.

That iPod only has 111GB of usable capacity even though it was marketed as having 120GB. Click here and see the note at the bottom of the page for more information.

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You need to complain to the whole data storage industry then. That's how all data storage devices are marketed. If you buy a 320GB hard drive, you are not going to get 320GB of usable storage; you'll come out short by about 22GB. If one company decided to use actual storage for marketing, that company would be at a marketing disadvantage compared to competitors.

An iPod is a data storage device that hold and plays music (and other media).

I just got the 120 gb & saw the same thing. 111 gb of usable space, not 120 gb. Apple should market it as a 110 gb, For that matter, all units should be marketed by the usable space. I could put my entire 8 gb Nano contents in that missing space.