I bought one of the 16G touch models before Christmas and have been loading it from cards received via Apple store. I plugged it into my Dice unit last night for the first time and was truly amazed at the sound quality. I have about 7 hours of music - mostly individual songs chosen because I like them. Anyway, just thought I share with all of you.

 

I also got an iPod Touch over the holidays and just installed a USA Spec unit to bring the music into the car. Very happy with the sound quality as well. The Touch is also a nice interface for in the car since it's self-lit and the display is easy to read and use while driving.