iPod classic 1.0.2 update has a nasty bug in it that causes the drive to constantly spin -- a glitch that's a little more troubling than those freezing issues we heard about, since bumping a spinning platter is a sure way to kill your drive dead. Most users see the problem manifest as the battery draining much more quickly than it should, and it seems to be particularly a problem when using CoverFlow, but others say it's totally random and that replacement iPods with 1.0.2 loaded don't exhibit any symptoms. In any event, iPod Classic owners who haven't updated should probably hold off, and those who have should see how their devices are holding up.
Read -- Apple support thread #1
Read -- Apple support thread #2
Read -- iLounge forum thread