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I've engraved all the iPods I've bought and it's usually with name and date of purchase. (the date because it usually ends up as a Christmas gift). I figure it's a good way to guard against theft, or at least prove ownership. I didn't do it for the reader though, I know you can't return it if you do, and since I'm new to the device, I guess I don't trust it as much. If you want it engraved though, I say go for it!
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