I don't own a photo iPod, just the mini. I also noticed that during use, my iPod mini's diagnostics report the hard drive temp as 35 degrees C, which is warmer than the hard drives in my computer. Keep in mind that inside the iPod there is a hard drive, 2 processors, a graphics chip and the battery all producing some heat. Unless it's quite warm to the touch, I wouldn't worry about it.
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