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I've been wondering about this for a long time. Whenever I sync my iTunes library to my iPod the bar showing how much is full always shows this little bit of orange labelled as "other" taking up space on my iPod.
Just what the hell is "other" and more importantly how do I get rid of it?
Pfft, you're all wrong. It's the embedded database that's stored on your iPod and keeps track of when you last played a song, what songs are in which playlists, your ratings for songs, probably also their MP3 metatags for sorting purposes (so it can get all that info quickly from the DB rather than scanning the whole drive and loading it from the MP3 metadata headers), etc. Without that DB, you have no playlists and the UI probably wouldn't even work. Apparently it's stored in a hidden folder on the iPod (/iPod_Control/iTunes), but I wouldn't recommend messing with it.
It also represents anything you've copied onto your ipod's hard drive for storage. For instance, I have a few gigs taken up by 'other' due to dropping a backup copy of my photo library into mine as full-res files, instead of the reduced-resolution portfolio set I keep in as actual pictures to view.
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See: http://compreviews.about.com/od/storage/a/ActualHDSizes.htm