Apple just released an update that addresses some of the comments above. I'll just cut/paste it verbatim:

Read Before You Install iPod Updater


iPod Updater 2004-07-15 includes iPod Software 3.0 for use with iPods with a Click Wheel. iPod Updater 2004-07-15 also includes the latest software versions for iPod mini and the third generation iPod.


With iPod Software 3.0, you can:



Shuffle Songs with one click (using the Shuffle Songs item in the main menu)

Create multiple On-The-Go playlists

Delete songs from On-The-Go playlists

Select reading playback speed for audiobooks

Hear audible click user interface feedback in headphones

Charge via USB connection

Enjoy improved playback performance




For more information about iPod, go to http://www.apple.com/support/ipod.


iPod Updater 2004-07-15 contains the same software versions as iPod Updater 2004-04-28 for all other iPod models.


iPod 3.0 Software is not compatible with other models of iPod, including original scroll wheel and touch wheel iPods, and iPod mini.


iPod Software 2.2 and iPod Software 1.2 should not be used with iPod with Click Wheel.