Yes, conditionally. Whenever you pause play on the iPod, it will go into a sleep mode after a couple of minutes to conserve battery power. When you press a button to get out of sleep mode, it will still be paused at the same place within your song/album/playlist. However, after about 36 hours of sleep mode, the iPod will go into a "deep sleep" mode to conserve even more battery power. At that point, you will lose your spot where you paused.
The iPod is never 100% turned off (unless the battery is completely drained), otherwise there would be no way to turn it back on -- there is no hard on/off button.
I just got it last night at last and trasfered some albums with AnaPod (thanks, Kelly!). Experimented with it a bit, and I already love it. I'll mainly be using it in the car, which is why I'd like to be able to resume, as you would with a CD in your car stereo. Is pressing Play/Pause for a few seconds put it into sleep mode then? I thought that was Off.
Gotcha. Thanks. Enjoying the hell out of it. Bought a tapedeck carkit that allows control of the iPod using the car stereo and was blasting some random tracks in the car using the Shuffle mode.
Have you tried AAC at 192kbps? I did somewhat extensive A/B comparison of MP3 and AAC when I first got my iPod, and found the sound quality of AAC much superior. If I remember correctly AAC at 128kbps sounded almost the same as MP3 at 192kbps. I rip all my music in 192kbps AAC.
I did a lot of comparisons before settling on 192K VBR MP3. I did not notice any difference between 192K VBR MP3 encoded with Exact Audio Copy / LAME and 192K AAC (fixed bit rate) encoded via iTunes. iTunes did not offer AAC VBR encoding when I did this. The MP3 encoder built into iTunes was inferior to EAC w/ LAME, though. I am using Shure E3C earbuds for my listening.
I opted for MP3 over AAC for better compatibility, too. There are not many devices other than the iPod that play AAC, while virtually everything plays MP3 files. I only wanted to encode my music library once.
That's probably why I thought AAC sounded better. I just use iTune exclusively for all the audio needs these days. Then I use slimserver from slimdevices to share the music via Roku network music player. Slimserver can transcode a couple dozen formats including AAC, and it works out pretty well for me.