Get something flash based. I suggest a sandisk sansa. Ipod sucks.
They're cheap, too. Don't pay more for the Ipod name when the nano is a pretty featureless player.
Buy a sansa, then go to emusic.com and get 25 free songs, then sign up for rhapsody for a free month trial. Just remember to cancel all that shit before your trial period runs out.
Also, take some of the money you save and get some good earbuds or headphones, because all pack-in earbuds suck.