I'm not sure what glich you mean...
You have always been able to use the iPod as a firewire drive, by ticking the box in iTunes (this mode is also used to put the contacts onto it!)
I have a couple of hundred megs of software on mine, and it's never caused a problem.

The best bit is they have fixed the track ending prematurely bug... =)
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Jazz (List 112, Mk2 42 gig #40. Mk1 4 gig #30. Mk3 1.6 16v)