Just to chip in. I have an ipod and a couple of other mp3 players. Ipod wins hands down. Saying that, i'm a Mac user, so it runs flawlessly with itunes software. Idiot proof and totally reliable. (Not sure if the PC versions are as smooth though)

Regarding folk music downloads.
Go to www.wovenwheatwhispers.co.uk

A wide range of folk / acoustic / roots music with 10+ albums being added every week

Cheers
LL