I'm typing this post on an iPod. If you've never played with an iPod touch before, borrow one from a student. Better yet, get them to show you things like how it displays photos, videos, and album art. It also has a notepad, wifi, and a web browser. It can function as a PDA, or even almost be a replacement for a laptop.
There is also a phone version that you may have heard of, the iPhone. I've seen a few of these around, but they are officially coming to Canada July 11th (the second generation iPhone). Everything I just wrote about, plus mobile phone and GPS.