hi, im not a great expert on digital camera's so i'll leave that to people who know!
I would definately recommend an Ipod, the bonus is if you get an ipod nano (which come in some really nice colours - i have a pink one!) you can put pictures on it which you will have taken with your new digital camera!!
I love my ipod, and recently discovered that i can play my songs in my mums car! (you can buy a tape thing from asda for around �8 that you plug into the headphones bit).
i know a lot of people who dont like the ipod, but i dont see what is wrong with it, i love mine. I got my boyfriend an ipod shuffle and he loves that too.
I dont think i would prefer the shuffle though as you cant select the songs because it doesnt have a screen, plus i like mine because i can look at pictures on it.
The one i have is a pink ipod nano (you can get sliver, blue or green & a black one - but thats a bit more expensive) for �129 from woolworths & argos both have them.
hope this helps x