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as follow through on my earlier post, i tried my 2nd gen Nano synching with the new iTunes and audiobook playlists functioned properly on that device(the Nano), restarted at the proper location and reported number of plays back to iTunes. It was not necessary to fiddle with the files to do this. However i don't know if the new Nanos work the same. I am really behind the curve on upgrading and not looking forward to the inevitable.
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