Hi BestYouCan,
You have three options:
a. iPod Classic - hard-disk based so has a really large capacity, plays video and cost per GB is lowest.
Cons for video watching: Small screen
Cons for exercise: Relatively bulky, hard disk based (hard disks are theoretically prone to damage if you run/do impact with one on your person and also are supposed to be prone to kipping during impact - however I know several people who use the iPod classic without any issues during exercise and at one time did so myself - apple quality standards are amazing.)
Pro: ALL you music, workouts, audiobooks, podcasts and video is likely to fit on one. Good for people who dislike periodically connecting the iPod to PC and swapping content in/out, good for those who dont like to plan and want to carry around their entire collection at all times so that when the mood strikes them, whatever they want to listen to or watch is right there.
b. iPod Nano - flash based storage, slightly smaller screen than Classic, unbelievably sleek and compact, available in 4GB and 8GB capacity
Cons for video watching: Small screen (although I watch entire movies and TV series on my nan and have absolutely no issues with screen size, the brightness and clarity of the screen makes up for the size in my opinion)
Cons in general: Unless you entire collection of workouts and songs is not very large, chances are you will have to swap content into and out of the Nano. Consider your PC on which you store your collection the libraray and the Nano the equivalent of a tote-bag in which you can carry significant but not too much stuff to carry around. Every few days you must refresh the contents of the tote if you libraray is larger than the tote.
Pros for exercise: Barely there - can be worn on the wrist or arm, or in a pocket and you want even likely know it is there.
c. iPod Touch - flash based storage with an amazingly beautiful large touch screen
Pros - Video watchers delight, the touch screen is just too cool to use, the screen is made from excellent scratch resistant material, lots of other nifty stuff you can do on the touch like use wi-fi to check your email!
Cons: Pricier than other models, relatively bulky compared to nano although there are armbands avaialbel to use while working out.
d. Shuffle - tiny player that you clip on your clothes. Does not do video. I dont like this player in the Apple lineup, because it does not have a screen. I think the Sansa Clip or Zen Stoone Plus are far better options for a comparable player.
I agonized over the decision before finally choosing the Nano for myself because I do a lot of video watching on the ipod (during travel or commutes for which touch is better) but also use it almost every time I exercise (Touch can definitely work for this too, but Nano scores on size). I finally chose the Nano.
However I did buy the Touch too for my teen niece and I think it is still the most delightful player on the market. Nothing compares in my opinion for finish, ease of use or just how wondeful the experience of the touch interface is.
DH has the classic. He likes having his entire music collection with him and he listens to music a LOT in his car, using the iPod as his juke box.
Keep in mind - Every September (by the 9th or so) is when Apple releases a new line up of iPod models. It is somewhat likely prices will go down and a few features to get added on in September this year, going by past trends.
~* Vrinda *~