If you're going the iPod route, you might want to consider the iPod Classic for $50 more than the 8GB Nano. I realize it's over your budget, but it is cheaper per GB.
The Creative Zen is a very good iPod alternative. And you can get the 8GB version on Amazon for $120. The 16GB is under $200. It also takes SD cards so you can expand the memory. Amazon.com's mp3 downloads store and Amazon Unbox are great alternatives to iTunes store, provided that you're in the United States. Amazon is planning to roll these out in other countries, but I'm not sure of the timeline on this.
Creative Zen player:
http://www.amazon.com/s/ref=nb_ss_gw?url=search-alias%3Daps&field-keywords=creative+zen
Amazon Unbox:
http://www.amazon.com/b/?&node=16261631
Amazon mp3 downloads:
http://www.amazon.com/MP3-Music-Download/b/ref=sa_menu_dmusic1?ie=UTF8&node=163856011
I am looking to purchase my fist MP3 player. I would like to be able to store a movie and about 750 songs. I am mainly going to use it on my commute on public transit and on planes. I first was thinking of Nano 4g but think 8g might be a better investment in case I want to store more later. The Zune also sounded good to me because of the FM radio (which I would really appreciate) but I seem drawn to Ipod because of its popularity and availability of downloads.
Any suggestions? I don't want to spend too much (less than $200)

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