Man that one is spreading quickly. I found it on Spymac.com .... it's NOT TRUE in general cases. Rumor holds that it may be true for the absolute first iPods (first-gen 5GB), but my roommate has a first-gen and it's still ticking fine. That guy must have just gotten a bum iPod ... there are lemons for every product.

Additionally, if your battery does happen to go dead (after four years of regular use, etc., it could happen!) Apple will replace them for $99 plus shipping, or there is a website that sells iPod batteries for $49 if you want to venture and install them yourself.