Scott, thanks for the info. I had actually bought a 40gb iPod when I bought my iBook. Was out at lunch time and picked them up then headed back to work. Returned the iPod unopened on the way home. $400 was just too much to pay for an MP3 player regardless of the uberkool factor. And when I'm not actively mobile (sitting at work, sitting at home, on the train, etc), my iBook *IS* my iPod. I'd only want a more portable unit for when I'm walking, hiking, riding my motorcycle (which would worry me with an actively spinning hard drive in a regular Pod anyway), etc.
The shuffle has been holding my eye since Steve's Keynote speech.
Thanks to your very real-world review, concerns and info, you've convinced me to go ahead and get one. And $149 sits WAY better with me than $400. But that's just me