I've also been listening to more audio books as a way to kill time in the car. Most audio books are coming in as mp3, but then you don't get the benefit of speed-up playback or having the iPod remember your position. In order to have iTunes classify a file as an Audiobook, you need to do 1 of the following things:
Disclaimer The opinions expressed herein are my own personal opinions and do not represent my employer's view in any way.