The features of the iPod Classic are virtually identical to those of the 5th generation.
The iPod Classic 160 GB supports several file formats for video playback: H.264 or MPEG-4 video files in the MP4, MOV, and M4V formats. It supports a resolution of up to 640x480 pixels, at a rate of 30 frames per second.
One major improvement to the video playback system is that the iPod is now able to recognize chapters in movies, allowing users to skip forward as they would on a normal DVD. It can also start up where you left off watching the last time.
When using Shuffle (which plays a song from your library at random), you can now choose one of three shuffle settings at any time. You can choose to shuffle songs, shuffle albums, or turn off shuffle. This is nice when a song comes up and you want to listen to more songs by the same artist, but don't want to have to go back and manually select that artist.
Genius is still a relatively new feature. It can be somewhat strange, and I personally don't use it very often. Genius is supposed to find songs similar to the one currently playing and create a playlist; however, the songs often bear little relation to each other.
USB Hard Drive
This is a useful little feature. The iPod can now double as a flash drive of sorts (though data is stored on the hard drive, so it technically isn't a flash drive), as users can store data on the iPod through a USB cable.