The iPod is a wonderful thing
The packaging was so beautiful, I hated to break into it. First class job, Apple--I've never seen a better package design (and I teach design)!
First impressions: This little beauty has been so easy to use and upload music to (using OS X and iTunes) not to mention editing and erasing what I don't need.
I use the iPod when I'm working on the computer and while I'm in my car. The car is where I've really gained the most enjoyment from it's use. No more fumbling around for a particular CD. For my car I use a $10 cassette adapter from Best Buy. Not exactly the greatest sound (less clarity and separation than a CD), but worth what I paid for it (I tried a Belkin wireless--pure crap). I can now drive for hours without touching the music controls, if I do, the remote, supplied by Apple, works great.
If anything, the iPod (I can speak as a brand new user) has enriched my music listening experience.
Problems? They are minor. I do have the "clicking sound" between tracks and occaisionally my FF and RR buttons won't respond. All I do is toggle my "hold" switch on and off and it works. I can live with such a minor bugs compared with what this wonderful device has given me in return. Other than that, the major complaint that I have is that the battery life doesn't quite live up to what it promises. I get about 2/3rds of what I should have from it--but then again, I can be hard on a battery. If Apple comes out with an upgrade to fix these minor problems, then I can say my iPod will be perfect.

