The clever guys at iPoding have discovered that the new iPods have a recording feature built-in!
“Well, we couldn’t wait so we went to the local Best Buy and picked up a new Gen 2 15GB. It’s going to be taken apart soon, but we first ran Diagnostic Mode on it. It has a recording feature! There is also a test for LINEIN that does recording too. We don’t have a mic to test with it at the moment but after “recording” when we listen to the headphones we hear the sound of nothing recorded (you know what we mean right?)”