Just look at the spam above!
Back to unusual uses for iPods, a classic trick is to make some audio files of DTMF tones of phone numbers, store them in a "phone book" playlist, and then play them into a phone to make an autodialer! (Someone did something similar at a Science Fair in the past. She programmed a computer system (probably for amateur radio) that decodes voice and then normally dials phones. Instead of dialing a phone, however, the system was set up to output the tones to a MCU card that switches power to lights, meters, and motors on a display board. She was concerned that the system would have difficulty with the noise, so she recorded some MP3s and played them on her iPod in a constant loop. She then connected the iPod to a handheld radio transmitter.)
Another one that's possible on the regular color iPods is to take a PowerPoint presentation, make pictures from the slides, and then scroll through them on the iPod while it's connected to a screen to display the presentation. In fact, it should also be possible to add background music and/or voices to the presentation. If only it's possible to have it automatically change slides...
It could be possible to put Knoppix on an iPod and then use it to boot a PC.