You won't get great sounding recordings by recording telephone calls with an iPod, but it is possibly. In an ideal telephone recording scenario, you want independent control over each person on the call, so that if the person you call is too quiet, you can turn their volume up or your volume down. You won't get independent volume control for both sides of the call when recording a telephone conversation on your iPod, but you will get a recording that you can later use as part of a podcast or transcribed interview.
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