Apple have released a new version of their iPod software v1.3! What's new:

The iPod Software 1.3 Update provides iTunes 4 support, including playback of AAC encoded audio files (Mac-only). For Windows users, iPod Software 1.3 adds support for Audible.com content. Additional enhancements include audio playback and user interface improvements, increased playback time on scroll-wheel iPods, and longer stand-by time for all iPods