I created a playlist for everything by creating root.m3u per the manual. This has everything in it on my ipod which is about 20g of mp3s. If I select "shuffle" the ipod disk starts grinding away and really never ends that I have seen yet. First few times this happened, I was not quite sure what it was doing since I could hear the disk drive chattering from a few inches away.
I did not see this happen before but I changed how my music is placed on the ipod recently and instead of separate folders for each album or artist, its all in a music directory 'flat". I think the issue is the size of the root.m3u since it lists every mp3 on the system. I have not seen it "recover" and usually stop it because it just has grinded on for some minutes.
I'm off to create a new playlist now and play some more. Great software everyone. Thanks!