Since I have an iPod Video (got it somewhere), these blog posts got my attention:
F-Secure: iPod Virus
Kaspersky: Infector for iPod
While this malware only affects iPods with iPod Linux installed, it is scary to think what are the possibilities. What is the scariest? Bricking an iPod. A malware bricking an iPod is very remote; the chance that an iPod owner will brick it is higher.
NOTE: When a device is “bricked”, it means the device is unusable, leaving it like a brick, hence the term bricking.