I also just bought a refurb iPod 20G model - from buy.com. I had a coupon too so I paid a nice 221.00 for it.
But I am a little nervous about the mere 90 day warranty and am considering getting the extended warranty (another common thread topic).
I have purchased other refurbed products, the primary being my Onkyo receiver and DVD player. Both have had no problems and it's been at least three years.