I'm on my second one...bought a 16gig model the day they came out and it was fine for a long time, but about 3 months ago it froze up on me while updating a few applications. It was over a year old, so Apple still covered it, but I had to pay shipping....but no big deal, got a brand new one in the mail in about a week.
As far as applications....there are tons of good ones. Field runners is by far the best game made, I have countless hours racked up playing that. Subway shuffle is also a lot of fun, and great for killing some time.
For non-game apps, yellowpages mobile is good, the google maps is also nice, and Units is a great conversion program (weight, length, area, volume, power, etc.). The only bad thing is that you have to have wireless internet in the area to use a lot of the applications unlike the iPhone.
Overall it is an awsome iPod, much better than anything else on the market. The safari internet is really easy to use, and obviously the music part of it is great. One complaint is battery life, especially when playing games...fieldrunners drains the battery in a few hours. But for music playing, it will last all day. I highly recommend one, my girlfriend got a new iPod nano a few months back, and I trid talking her into a iTouch...but she wanted a pink one....she regrets it now.
