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Apply Refurb
Hello. I would recommend going for the new iPod for the extra $40. It is not a huge amount if you are already going to be spending over $200 to just up it a bit. My cousin once bought a older version of the iPod as a refurbished iPod and within a few weeks it stopped working. He took it back to BestBuy (who was selling it although Apple did refurbish it) and he ended up getting it replaced with a brand new iPod. So, you can take your chances that you will get a good refurb, or get a bad one and get it replaced with a new iPod, or end up having to go through the run around if something happens to try and get it fixed.
So, truth be told, refurbished iPods are not that bad, I just know someone who had a bad experience with it. As long as you get a warranty you should be fine though.
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