When my ancient 40-gig iPod Classic started having problems last year, Russ found a perfectly serviceable 80-gig model on eBay that's doing just fine for me now, for a lot less than paying new-model prices. If that feels too risky for you, check the "refurbished" section of the Apple Store -- it's a crapshoot what's in there on any given day, but they do come with the assurance that they've been checked over by Apple.
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