Steve,
Well, I tried .193, this time with the iPod, and had some of the same issues.
I plugged in the iPod. I also got an "initializing devices" dialogue, but it didn't last forever as it had for the Muvo N200. I'm not sure what this is actually doing, but since "initializing" in MC has always meant wiping the device clean, this is a *very* scary dialogue. If it is NOT in fact initializing my device, I would really appreciate the wording being changed.
I went to sync the iPod and the space free calculation was totally screwed up. My settings were no conversion, delete anything that's not selected, sync w/MC. In the end, I was only able to transfer about 5g of songs -- at this point the Sync window said I had 1.2gb free. However, after syncing (and it deleting roughly 40gb of music off my 60gb iPod photo and then adding back 5gb of music) -- when I clicked on the iPod itself in MC, I had 43gb free. (The rest is taken up with photos, calendar, contacts).
I couldn't put more on because whenever I selected one more playlist, the sync module would say "you've got too much selected, remove some of it".
BTW, remember that one song I had that would transfer and then skip? It is still doing that. It bugs the bejesus out of me 'cause it's only this one song and I can't figure out what's different about it.