I've had an Classic XP3 for almost 16 months now. The only problems I've had software-wise were related to the Musicmatch ripping s/w - a free upgrade to release 7.2 cured the problem. Only problem I have had with the player itself was a broken Stop button a few weeks back that I repaired myself. Now toying with the idea of replacing the 10 GB drive with a 20 GB Travelstar. However, the cost of the new drive ($120 incl. shipping) is about the same as buying a refurb'd XP3 at Amazon, so I might go that way instead.
Always tell the truth. Then you'll never have to remember what you said the last time.