the prrogram you download is called podzilla and it installs a linux operating system onto your ipod, when instaling it asks which system you want as your normal startup system, i use the ordianary ipod op sys. My 2nd gen ipod when its booting shows the apple logo then a picture of a penguin, holding down menu and rewind boot it into linux.
recording option,
a selection of quialities from 8khrz to 98khrz and line in or microphone input (i dont know what the dirrefance is) the files are reorded as wav files and can bve played back in linux mode but not in ipod mode, all playlists can be played back in linux mode but there is some loss of the origional quality and it has to buffer each song before playing,
ALL MUSIC PLAYS CORRECTLY IN IPOD MODE
recorded files can be found n a recording folder on the ipod.