Going to System Preferences -> International -> Input Menu -> check Hebrew brings up a flag in the menu bar. Click on that and select Hebrew. You should be able to input the text in Hebrew.
Keyboard layout for the regular (non Qwerty) Hebrew:
anyways, does that mean that the ipod will display hebrew that you input into itunes? i tried that before, but it wouldn't work, so i've been having to put in my subliminal/hadag nachash/tipex in english...well, transliterations anyway...i'm pretty sure apple says that hebrew still can't be displayed on the ipod...