When I had the three day test drive here in the UK, I tried my Gen 4 iPod (40G

and it didn't work at all. It initially said it was 'reading' (I think) but did nothing, despite waiting for nearly half an hour. iPod only had about 6GB on there at the time, all of it was .mp3 format. I'm hoping my new cee'd will have working iPod capability when I get it in Sept - if it doesn't, it's going back to the dealer until it does!
Memory sticks worked fine though!