I guess I don't see what the difference is if you are setting up the folders to burn the MP3 disks why you just don't set up the iPod with those same folders/playlists...? Are you still wanting to change music on the fly? I just set up groups of music I like together then decide which playlist I am going to listen to and let it run through. Like you said, though, it does free up the aux jack if you use the cds.