Did you open up the 120GB as well?
Anyway, I'll put the new drive in and see if it works.
If it doesn't I sell the 120GB iPod, buy a 160GB one, put in the 240GB drive and sell the 160GB drive.
Will cost a bit more though.
As for the SQ I don't care since I use a Fostex HP-P1 Dac/amp, so the iPod is a storage/transport only for me.
To be honest, I haven't heard any iPod that sounded good yet and I had 3 of them already.
An iPod video I remember to be the last one before the Classic but I don't remember the first one.