What should I do with these iPods?

A few weeks ago, my sister-in-law gave me her iPod Nano when she got a new iTouch. I think it’s a 3rd generation. It works just fine.

My husband, not knowing about the iPod his sister gave me because he’s been out of town, bought me a new iPod Nano as an anniversary gift. My original plan was to exchange the one he bought for some new earphones and one of those FM transmitters so I can listen to it in the car. However, the new iPod seems way cooler and now I am sorely tempted to keep it. Tomorrow is my birthday, and my husband said he’d get me the accessories I want if I decide to keep the new iPod. Right now I’m torn between wanting to be practical and wanting that iPod.

Also, my husband bought the iPod in the middle of August, which means I’m past the 45 day return policy of Best Buy. I may not be able to exchange the iPod if that’s what I decide to do.

What do you do with an unwanted, used, iPod? Is there a big difference between the older iPod Nano and the newer one?