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iTunes works from yer hardrive.. anything in your itunes library is on yer hardrive. (somethings can be streamed in iTunes, but you cant put those on the iPod since you dont have the file)
dont confuse yer iTunes library with the iTunes store. the iTunes store is to buy music from. when you buy it you then download it to your hardrive. it will be placed in the folder you designated for your iTunes library.
there is a setting (i cant remember if its on by default or not) in iTunes that will organize the music folder into sub folders based on bands then on albums. it will also rename the files according to song name. (or you can change to song names+album name etc.) it's pretty nifty if ya ever hafta find a file.
anyway iTunes library = music you own and is on yer hardrive
iTunes store = music/movies/podcasts/internet radio you can buy (some is free mostly the internet radio stuff)
also there are usb chargers you can buy. i think like $15-$30.
welcome to the good side. ipods are incredibly handy. i was against them for a long time. then i played around with my friends and went and got one like the next week. very easy to use. and waaaay more convienet then mixed tapes and cds. once you get used to it.
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