Re: Gapless audio: True gapless audio is functionally impossible with MP3/AAC/etc. files, as the PCM audio stream has to be broken into specific block sizes to be compressed, and there is almost always a small gap of silence left over at the end. However, the iPod could do a much better job and pre-cache the next track (which it only does sometimes, and not very well), reducing this gap to a barely audible hiccup and not a noticable pause. I suspect it is partly a HD issue (reading the data pre-emptively) and partially a processor issue (cannot begin a new decoding process while there's already one going; it's an iPod, not a computer, and multitasking is not exactly its forte).
4 Wishes for the gen 5 iPod