I got a pair of Koss Porta-Pro[1] headphones yesterday. They have a great sound, and there’s the additional bonus of not looking like an iClone when walking about.
Also found a quick way to pause the ‘Pod (when answering a call on the phone, for example) — just yank the headphone cord out of the jack, and playback will pause. This is way simpler than unlocking the hold button and then pressing pause.
[1] Koss’ own site is spectacularly user-unfriendly, you have to register to do anything. Use the price comparison sites instead.