DiscountHeadphones.com. Billy reminded me that headphones are such an important accessory for iPods. IMHO everyone should get a case to protect the finish of the iPod and then the best headphones they can afford.
Discount Headphones carries the Etymotic 6i for $89 and if you are really splurging for concert quality, the Etymotic 4s.
Go for it, its Christmas after all!