Well I personally skipped the settlement and took mine into our local Apple Store this week because I still had Applecare in effect. They determined the battery was indeed faulty and issued me a replacement (refurb) 3G iPod.
I couldn't find anyone online that had received any settlement reimbursement but it seems there was some contention that wasn't resolved until December 2005, so maybe that's the holdup.
The
iPod Support Page has details on the $59 battery replacement if you end up having to go that route.