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i have an old computer with a small hard disk. i have an ipod on the way. I'm already skeptical about keeping the ipod since i've read that its not compatible with windows 98se. once i upload the songs to the ipod i will most likely delete them from my computer. will i still be able to create playlist without having the files on the comp? or do i need as as much space on the comp as i do on an ipod.

the ipod i'm getting is 40gb and i have less then 10 gb on the comp.