New iPod with Recording Features?

iPoding has posted details on how to activate recording on the new iPods:

Well, we couldn't wait so we went to the local Best Buy and picked up a new Gen 2 15GB. It's going to be taken apart soon, but we first ran Diagnostic Mode on it. It has a recording feature! There is also a test for LINEIN that does recording too.

A followup article provides instructions on how to test this new recording feature. Results are limited - but the capability is built in...