How are you encoding? The battery life specification is based on a 128 kbps filerate. The iPod fills the buffer, then uses that to play the songs. When the buffer empties, it reads from the HD again to refill the buffer. (This is oversimplified.)
If you are encoding uncompressed or lossless, the iPod has to read from the HD much more frequently, and if the file itself is larger than the buffer, it has to read from the HD constantly. This will kill your battery life.
Hope that helped?
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