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When I first opened the box I noticed it was packed very well and as I held the K-Pod for the first time I noticed it had some weight to it. The K-Pod is built very solid and would not move around on the radio desk as you used it. There is a tilt stand that places the K-Pod at a very nice operating angle, this stand can be removed if you would rather have the K-Pod sit flat on your desk. The VFO is very smooth and the user is able to adjust the drag if need be but I was very happy with the VFO right out of the box. There are 8 buttons on the K-Pod that can be programmed with macros, each button has a tap and hold function you therefore have 16 macros. Macros are a great way to have a one button push (or hold) to control a commonly used button on the K3. Also Macros can be used to preform a multi task function. For example I have programmed a CW Split macro that puts the K3 in CW mode, sets VFO A and B to the same frequency, moves VFO B up 2 kHz, sets the filter to 400 Hz, clear both the RIT and XIT and locks VFO A on frequency. All this is done with the push of one button. The instruction manual gives you many Macros to choose from. You can program your own and try them out using the K3 utility program on your PC. On Elecraft's website you can download free of charge their programers reference to learn more about macros and programming them.
There is a rocker switch that will allow you to smoothly switch from VFO A (LED D1 lights up) to B (LED D2 lights up) and then to RIT/RXT (LED D3 lights up) adjustments. The manual says that LED4 is user programable and you can actually control the on/off function of D1, D2 and D3 as well.
On the top of the K-Pod there are 4 connection ports:

1.  Auxiliary outputs that the manual says can be used for an external antenna switch, amplifier and so on.
2. DATA connector is used to connect an RJ12 cable (supplied) to the K3. 
3. USB connector (USB cable is supplied) is used to interface the K-Pod with your PC for firmware updates and for what Elecraft calls "future" PC control. 
4. Power connector (cable supplies) can be used to supply the needed DC to the K-Pod and I say "can be used" because via a simple mod
   (parts supplied) to the K3 and K3S  you can power the K-Pod via the DATA cable.