You might also consider the iPod Nano, a sort of middle stage between the full-sized iPod and the shuffle. It has flash memory like the shuffle, but also has the display (though small) and most of the features of the "big" iPod, but a nice compact size. You can get a lanyard with earphones incorporated, which is nice to use when you're on the move. Also handy for downloading audiobooks for travel. Though the screen is small, you can also load photos onto it, as well as other data.

I got mine for Christmas of 2005 and I use it all the time. Apple will also engrave something on the back of the Nano just like the full-sized iPod. On the back of mine, I have the last line of James Joyce's novel Ulysses: Molly Bloom in full climactic mode: "Yes, I said yes I will yes"