Mostly, I feel like there's way too much stuff cramed together on this site. It's making me have to look too hard to find what I want. Consider elimiating the right side ads to open up some more room. People tend to ignore them anyway.
Your front page is really busy, I don't know where to go first. You could break your new products into their own page to clear up some room. Something on the page should have enough emphasis to make me want to focus.
Give the individual sections such as the Apple ipod 4g their own landing pages rather than putting all of the products into one shopping results page. This will also help draw more people in through search engines and give you easier avenues for things like adsense and such http://l8shop.net/Products/iPod_4g_3.aspx
I do like the color coded dropdowns asociatting to the different sections of your site.
Just a couple of thoughts. Hope it helps.