You wanted the best, you got... Out of Context Quote of the Week.
"Mangini might not have had balls, but he DID have soft, supple breasts." (SEADAWG)
Nope, the controls are on the headphones. Meaning you can only use their headphones or third-party ones made for the new Shuffle... at least until the adapter comes out. Although at that point, you'd be out $110. Needless to say, this hasn't gone over well, from what I've seen.
I like the construction of the iPod - a good friend of mine has one of the first generation units, and it still works well. My main issue is iTunes - I'm sure it's a great program, but after using drag and drop functionality with pretty much every MP3 player I've owned, it's a definite must have for me.
For our PCs, we use DVD Audio Ripper ($29). For our Macs, we use Audio Hijack Pro ($32). However, the cheapest way to do it would be to record the audio output of your TV or DVD into the mic or line input of your computer.