I got an early Christmas present this week. The Apple Store is currently showing refurbished 3rd generation iPod Nanos for $79 (4 GB) and $99 (8 GB). The unit I bought was shipped from China via Fed Ex and arrived within 2 days. The unit is pristine, clean and, well, gorgeous.
My previous Nano was a 2GB 1st gen. version, and I've enjoyed it for the last 2 years. It, too, came refurbed from the Apple Store and I paid $99 for it then, about 1/2 the price of a new one. I highly recommend those on a budget shop the Apple Store's refurbished items, they're covered with a warrantly and work every bit as well as the brand-shiny-new ones.