iTunes 8 translation glitch
I installed iTunes 8 on our laptop, and connected an iPod to check if all worked accordingly. The iTunes was installed in Dutch, so the displayed information was also. Apparently, when you're Dutch, you get some extra capacity on your iPod, free of charge!
iTunes displayed the free space on the iPod as being 'Gratis', the Dutch word for when you don't have to pay for stuff. Because free in English means both 'not occupied' and 'for free', the wrong one seems to have been translated into Dutch here...