Ok....so after playing around with the 1.2 software for a bit, it seems the iPod does indeed keep track of play count as you listen to songs. But it is interesting that this information isn't updated until you plug your iPod into a computer. So if you made a playlist of songs you have listened to 5 or more times, that playlist wuld not be updated until you plugged your iPod back into your computer. I was just wondering why the iPod can't update these things on the fly, since it is obviously keeping count. Is this a 1.3 feature or just something the iPod is not capable of?
doug