Originally Posted by mikee286
The sound quality strictly depends on what headphones you use.
No, it definitely doesn't. It still sounds awful on my ableplanet noise cancelling headphones and our 7.2 channel home theatre system. It sounds somewhat better if you use one of the docking stations, but still not great.
And it has to be the iPod that sounds bad, because a $10 sansa clip on the exact same setup sounds loads better.
Yes, I have tried ALAC on it, but the amplifier is so bad that I cannot tell any difference between 64kbps MP3 and 312 Kbps ALAC.
It does a great job as a gaming device though. There's even a community port of Quake III for it. Runs like 5-10 fps on my iPhone, but I hear the newer hardware can make it playable.