This is sort of a "GWEN: remember to post" post.
I broke down. I did what I always said I never would. I bought and iPod today. I got a 4 gig nano, and must say: I love it. I decided rather quickly though that the cases and skins are tres expensive, and I didn't want to spend that kind of money. So I made a case.
It was really easy, and the best part is that there was no seaming. :D I'll post the pattern tomorrow.
-cheers and happy knitting!