Apple Device Storage Misrepresentation

i recently received as a Christmas gift a fifth generation late 2006 model ipod which Apple represents as having an 80gb storage yet on using such i note that the generic capacity is onlhy 74.3gb. Where has the other 5.7gbs gone. The loss in capacity is almost the equivalent of an Ipod nano 6gb device. has anyone else had a problem of the like.
G.

This is the same with every hard drive.
See if this helps;
"One more thing about iPod disk size
In iPod's About menu, the hard disk size is reported as slightly less than the technical specifications for the iPod. The same is true if you connect iPod to your computer in disk mode look at the info or properties window for the disk.
Why the difference? Most hard disk manufacturers measure disk size this way: 1 MB = 1 million bytes (1000 * 1000). A 4 GB disk, therefore, is one that holds 4 billion bytes. Computers, including Windows computers, Macintosh computers and iPod, measure disk size this way: 1 MB = 1 048 576 bytes (1024 * 1024). The difference in these two calculations is what causes the drive to appear as 3.7 GB on a computer, but actually be a 4 billion byte disk."

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