It is a bug, and here is the workaround I use to make it easier to eject the iPod. This method is also useful for other USB devices, especially if you have several, and you do not know which drive letter is used for which device:
The program "deveject.exe" allows to eject individual USB devices using the unique USB IDs of the devices. It can be downloaded from Heise's ftp site:
ftp://ftp.heise.de/pub/ct/listings/0316-208.zip
The file "deveject.exe" in this zip-file should be copied to "c:\windows\system32\", so Windows can find it.
You can copy a shortcut to this program to the desktop or your quicklaunch bar, and edit the "Target" field in the shortcut's "Properties" to make it eject a specific USB device, e.g. your iPod. You can add additional shortcuts for other USB devices.
The "Target" field in the shortcut for my iPod looks like this:
C:\WINDOWS\SYSTEM32\deveject.exe -EjectId:"USB\VID
05AC&PID1301\000A270010C511C0"
You have to replace the USB ID with the ID of your iPod.
You get the USB ID of your iPod when you enter the "deveject" command without arguments at a command prompt, or cut-and-paste the following command into the "Open" field of the "Windows Start>Run" dialog
([Ctrl ESC] [r]):
cmd /c deveject && pause
The iPods are listed as 'USB Mass Storage Device'. You can use the mouse to mark the USB ID in the command window (you may have to press [Alt Space] [e] [k] to switch to the select mode), and then push [Enter] to copy it to the clipboard. You can then paste the ID into the shortcut's "Target" field.
If the shortcut is on the desktop, you can also define a "hot key" for the shortcut, e.g. [Ctrl Alt i] to eject the iPod.
Dell Dimension 8250 Windows XP Pro