law - I bought one back in September. I have the 4gb. Currently, I have 339 songs taking up 1.30 gb. As I ripped the songs, I did select my favorites. I made play lists too - I have one called Island Songs that Laurie and I listened to on the long ride to southern Costa Rica.
The advantage the ipod nano has over some of the others is that it has flash memory - not a mini hard drive so it can take a beating (if you drop it it won't die) and you can jog, etc. with it.
I like that my computer has the tunes too - so I listen to them at work and my nano at home through my stereo
