Another iPod Nano 8GB here. I did have to change from the supplied Apple headphones to my Sony ones, though.
Had a portable CD player before I got it - a Philips, and although the sound is great on it and it's really funky, I got fed up with only burning so many tracks (as regular CDA, the player doesn't support MP3 etc) to CDRWs all the time.
The iPod has been a Godsend with my noisy neighbour, haha.
For other music needs, I use a Corsair 4GB flash drive, since I have devices in the living room and kitchen that support USB.