I just installed iPodLinux on my iPod, hoping to play around with it for recording podcasts. I was going to just use Audacity on my laptop, but the fan wouldn't turn off, so it was waaay too noisy to record in my office.
So, a quick run of an installer, and a quick search to figure out how to reboot into linux (reboot the iPod by holding down the "menu" and "play/pause" button until something happens, then hold down the "rewind" button until you see a penguin). It's pretty darned freaky to see a linux boot on an iPod.
The reason I wanted to use iPodLinux, is because it doesn't have the artificial 8KHz recording cap. You can set it all the way up to 96KHz if you want (but I found that flakey - 44KHz works best). Now, to scare up a microphone with a mini plug on it... (although you technically can record using your left earbud as a mic, it sounds like ass)
Oh, and it comes with better games, too... Asteroids, Tetris, Pong, Othello... Now, it really needs a version of Tempest. That would ROCK with the scroll wheel...
Thanks to links from Hackaday, Xlr8yourmac, Slashdot and a few others where I saw info about this...