When you purchased an iPod, apple registered your ipod serial number with your purchase, credit card, and name. Whenever someone purchases songs in itunes, apple records their name, credit card, and... the serial number of the ipod they are uploaded to. This also can happen (in certain situations) when the ipod is only connected to a computer.
So - If someone ever connects your ipod to a computer (and they WILL, in order to charge it or get a new song), Apple knows where your ipod is.
Man, you are lucky I am a ipodmodder and a spudgunner. Rare combination indeed. 8)
Contact Apple, punish iPod stealer. Simple as that!
And- no tip at home depo, or any non-restraunt.
EDIT-
