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First off, don't go crazy over pricing, but definitely look online at deals sites like techbargains.com, slickdeals.com and dealnews.com. You can browse or search for discounts and there often are some out there, either for older models (non-color 20 GB iPod) or just from resalers.
I agree with others here that the 20 GB color is a good deal, especially because it's not that old. Also, download iTunes and getting used to the software doesn't hurt. I wouldn't recommend the shuffle unless you're willing to sacrifice FM radio, voice recording, etc. at a similar price for the benefit of the iTunes ease-of-use/protected music.
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HP iPAQ h2210 w/ ThinkOutside Bluetooth Foldable Keyboard, Sandisk 256 MB SD card, Sandisk CF 802.11b + 128MB, extra 900mAh battery
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