Here is my continued saga from another thread post (
http://discussions.apple.com/message.jspa?messageID=3802495#3802495 ) that is more focused on an iTunes program issue causing problems with iPods (as opposed to the iPod having its own issues)
I think the problem is more of a corrupted library data file than the actual program. Ok, so the update/grade to 7.0.X problaby caused the corruption, but after starting over with a new iTunes Library (data, not XML) file, everything seems to be working fine with 7.0.2. My whole story is below:
Ok after my early elation of having my ipods up and running (and not useless pieces of expensive junk), I ran into more problems when trying to sync. It seemed like the ipod was locking up and when I tried to eject, then iTunes would lock up. I tried with my current 7.0.2 version. I rolled back to 6.0.5. I could add some music without any problems, except that I lost all my playlists since I had to start with a fresh library. So I tried to use my most recent library file (obviously that didn't work since it was in a newer version format). So I went back to my last 6.0 library (in the Previous iTunes Libraries folder). That's when all the frustration started. My iPod kept locking up (meaning an erase (sometimes with zeroing out data - a 2 hour process!), restore, update, and crossing of fingers). I tried this process with several different iTunes libraries under 6.0.5 and the result was always the same: a lot of cussing on my part. So I figured, what the heck lets try going back to 7.0.2, it can't get any worse than it is right now, I mean broken is broken, regardless of the iTunes version. I tried the sync manually, no playlists, fresh version of iTunes library, fresh iPod (erased & restored). Those songs transferred ok and speedily. So I tried more songs and then the entire library (still no playlists). That worked well. So then I tried adding a playlist. It worked too. More playlists, still working. The only thing that I haven't done is: updating podcasts, and I stopped the "download artwork" process (kind of pointless on a monochrome iPod).
Hope my story helps. Other than the extremely irritating loss of time (and the new, colorful vocab my 2 year old has), the loss of my playlists isn't too major: they needed a reorg anyway. But for serious iPoders (DJ's, Nike+ users, etc.) this loss could be a very big deal.
Apple should have tested more thoroughly. Their haste to counteract the fair share hack, has caused more problems with the majority of legal users, than it solved with the minority of hackers.