Check out overstocks.com. They sell the brand new items, but we've had good succcess with 'refurbished' items, which means that a product has been returned, and the factory goes through it again, and alot of times it's in better shape! Bought a digital camera this way, and just got my hubby an iPod from overstocks.com. The packaging looks like it was opened, but it looks brand new!
You need to decide what it is you need it for. If you just want it to listen to music then an ipod shuffle would be your best bet. If you want it for videos and games along with music then you'd probably want a nano which is getting into a little more money. If you don't mind other brands.the Sandisk Sansa is really good and a good price. It is compatible with itunes, Rhapsody, Amazon, etc.
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