I went to the Apple Store in the Mall of America and talked to them and they basically told me the hard drive in the iPod should be suitable for any kind of use.
It wasn't specifically designed to be constantly spinning at a high rpm and hasn't been extensively tested, but anything like that is covered under the one year warranty. As far as the battery issue goes I found that if you have alarms turned on, even if you don't have any alarms, it will drain your battery like nobody's business. So if you're iPod isn't holding a charge, turn off the alarms and see what happens.
-Juxel