Apple has posted a software update that fixes a number of issues with the new click-wheel iPod.

iPod Updater 2004-08-12 includes the latest software for all generations of the iPod and the iPod mini as well as a number of enhancements for the new click-wheel iPod.

Problems with the Hold function on the new iPod have been reported, with some users finding that their iPod would go on playing after it had been paused. Apple claims the update means that removing headphones while the Hold switch is on no longer wakes the iPod, perhaps solving this issue.

Other click-wheel iPod enhancements include: improved connectivity with some FireWire cards using the VIA chipset; improved connectivity with FireWire hubs, and with 4-pin FireWire ports; improved power management; and improved performance with the optional external battery pack.

The updater also includes iPod Software 3.0.1. This software works only with the new click wheel iPod. It offers the following features: Shuffle Songs with one click; create multiple On-The-Go playlists; delete songs from On-The-Go playlists; select reading playback speed for audiobooks; hear audible click user interface feedback in headphones; charge via USB connection; and improved playback performance.

When installing the update there are two options: Update and Restore. Beware – while Update will update the software on an iPod, not affecting songs and other data, Restore will delete the entire contents of an iPod.