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I've had my 20GB ipod since October of 2004. It's definitely one of my favorite toys and I've had very little problems using it with itunes on Windows XP. I've had no battery issues, it'll freeze if you try to skip too many songs at once. I use it quite a bit (walking to school, at work, in the car, etc).
Something I've never understood, what's the point of getting a video ipod? I just listen to music on mine, no need to be looking at it all day.
Good luck getting your issues resolved, personally I would just return it and get an 4GB Nano. There's not enough memory for my personal use but I've heard Apple is working on a 16GB and 32 GB version.
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