No.1

if i had $500 i would get an iPod Touch

i would get the 16gb one that costs $498.00
on store.apple.com
i love to listen to music and watch videos
so it'll really be great to be able to bring them everywhere i go
8gb definitely won't be enough
so 16gb is just nice plus it fits the $500 budget

when it comes to things like electronic gadgets and stuff
i always believe it is safer to get it from the original retailer
especially shopping online
you never know what they may cheat you of
like not giving you all the necessary wires and etc
or even selling you a second hand or faulty item
so i choose the apple online store!