If you have a second generation Shuffle, do not upgrade to iTunes 8.1!
The Sync contextual menu is now missing when you right-click the device so there is no way to sync now between iTunes and the 2G Shuffle.
When I play a podcast on iTunes that is also on the Shuffle, the play position does remain synced when I eject, play on the Shuffle, and redock. But, when the podcast is completed either on another iPod, iTunes or simply by marking the podcast as Not New, this information is no longer synced to the Shuffle.
If you then use the Refresh button on your podcasts, the old ones are deleted in iTunes but no longer on the Shuffle. As a result, I have to remember which ones were deleted, but I normally don’t pay attention to that. It’s supposed to be automated for a reason. It shouldn’t require me to write down a list of completed podcasts, refresh, and then hunt them down on the Shuffle and delete them.
This is a huge step backwards in capability for the 2G Shuffle. These tactics will not motivate me to buy a third generation Shuffle.
And look at the user interface inconsistencies. You’ve moved some sync options behind a Settings… button. This button is on the bottom-right for the Shuffle and the bottom-left for Podcasts.
Please tell me why you spend time and money removing features that were working before?
I’m rolling back to 8.0. [And here's what happened when I tried.]
Update: Here’s a list of more problems on Apple’s discussion forums.
