The RIAA gets weirder by the minute. Now the Recording Industry Association of America, the umbrella organization representing music record labels in the US, will sue you if you sell your iPod (or any other media player, I guess) pre-loaded with music.
Selling an iPod preloaded with music is no different than selling a DVD onto which you have burned your entire music collection.
Yes, this is straight from the people who had sued 83-year old grandmas and twelve-year olds for alleged music piracy.
My take on this issue can be summarized by one word: greed.