Perhaps a ping for the group?
I've been watching the reports... but everyone of them comes from a single source: iLounge. I have seen no corroborating reports that do not reference iLounge's claim. It strikes me that the "authenticating chip" may be a controller to tell the difference between double clicks, clicks and holds, volume up-down clicks etc., and the sending the right command to the iPod Shuffle. I've read commentary on both sides... it's DRM... no it's merely part of the control system. I, for one, don't think it's Digital Rights Management. It may be "hardware rights" management. It also may be licensing rights management. Let's wait and see.