My first iPod, and indeed my first piece of Apple hardware, was a blue 2nd-gen nano (4 Gb). I'd still have it up and running too, had it not been stolen some time ago. Oh well, my 5th-gen nanos have filled the void nicely.
Still, the 2nd-gen was an elegant bit o' kit. My wife was envious of how well it worked with my iTunes library. Her Sansa e250 was a bit of a pain to maintain; it didn't integrate well with Windows Media Player, and its video playback function was a total joke. She eventually ditched it for a iPod touch.