Another set of answers
As he said.
As for the battery - nothing lasts for ever. The myth concerning the ipod battery also comes from the fact that it is not designed to be removable - ie you need to de-solder it before soldering in the new one. Definately do-able, and 3rd party companies offer a better battery at a better price than apple. Don't worry about it - it'll last for years with careful use.
MP3's are the most common and at a decent bitrate, you will not tell the difference between an mp3 and a cd - especially driving in you Mini.
The software required is supplied free with the ipod, called itunes. This software will do all of your ipod maintainence, including ripping cd's, creating playlists, and transfering music to your ipod.
Never used any,so can't comment. Usually, if its free it aint worth having (waits for flames

).
Can't comment.
If you buy a brand new 4th generaqtion ipod, it will come with both usb and firewire cables.
If you buy a 3rd generation ipod it will come with a firewire cable, but you can buy a usb cable for extra.
Coopergeezer forgot to tell you that you CAN still use USB1.1, but it will be a bit slower than USB2.0,
for example an album would take a couple of minutes or so.
What he said.
Note that prior to the new 4th gen ipod, you could only add to a single 'on the go' playfrom USING the ipod.
Itunes can make all the playlists you like.
With the new 4th gen ipod, you can make multiple newplaylists USING the ipod.
Hope this helps - the ipod will totally change the way you listen to music
Texy