I was going to suggest trying to rub it off with a brillo pad or steel wool, but I think that would ruin the finish of the iPod. I am not an expert of lazer engraving but I do know that gun makers use laser engraving for serial numbers so that they can't be filed off. Knowing this, I believe that it would be nearly impossible to remove the engraving.
when i bought my ipod last year at the apple online store, they were offering free laser engraving, so i got my name engraved on the back. now i am selling my ipod, but obviously, they dont want my name on their mp3 player. is there a way to polish it away or otherwise remove it?