This
website has an interesting hack allowing the i-Pod to record audio at a much higher sampling rate that the really horrible 8kb/sec that a standard i-Pod is crippled to. It is not that high (256 would be fine for professional recordings) but it is a long way in the right directon. This hack is not for the faint hearted and it doesn't work (yet) with 4th generation machines. But it is an excellent effort. Is Apple so dumb as to do nothing to make this a standard feature?