I think that in the real world, 120GB is plenty. I have spent the last three days loading up around 150 CDs which I have not played in a while for a total of around 35GB. I was surprised to hear a significant audio improvement over the Shuffle I have been using...until I realised that I had ripped the whole lot to wav with no compression. A small change in this department now will probably mean that I don't have sufficient silvers to fill the device (No point in multiple copies of Bowie now is there?)

I got the 160 for 190GBP which, considering that on Christmas Eve a 120 would have cost 175GBP,  was quite a bargain.

Only one thing that really pisses me off is that I am now a nasty pirate. Even though I have bought and paid for every CD on my iPod, each and every one is in breach of the UKs archaic copyright laws. This being the case, why do I buy any CDs when I could just download them from TPB and be in breach of the same laws without any financial outlay?

A little further piece of advice - when you're encoding to .m4a in iTunes set it at 256kb/s father than the default 128. Sure, the files will be bigger but the improvement in sound quality is significant especially if you're using decent headphones. Personally, I use Koss Porta-Pros arounf the house and Koss Sporta-Pros when I'm outside. The Sporta-Pros are a bit more robust in their construction. 

But surely the 160 GB is better than the 120GB if you want your music in WAV or Apple lossless and a few videos / DVD's on your ipod as well, ie at the same time. I was reading a review the other day on the new 120GB, and Which magazine reckons the new 120Gb has a lot better sound capability than the old 80 & 160Gb models, but to take advantage of it it says you must encode at higher than the default 128kbs and of course use decent ear / head phones and not the supplied Apple ones.

They concluded that for music buffs the 120Gb clasic is the one to have because of the sound quality and HD space and the ipod touch is the one to have if you are into everything ie music ( compressed  at 128kbs I assume to to small capacity GB's ) vids, internet and games etc.

You pays yer money and take yer choice I suppose, but I would still prefer the 160Gb Classic simply because it has more GB's and thus more options  available regarding a music and video mix.

It seems a strange decision to sell a less GB version even if it does have ( slightly ) superior sound over the older 160GB version.