I would look at the Otterbox. They cover the iPod completely so it is continually protected.
Cydia costs $9.99 on iPod touch.
The iPod Touch 8gb costs 199$
In iTunes (it doesn't matter whether it's through the iPod Touch or not), videos cost $1.99.
about £90
350000
nothing
199.99
$600
$50.00
$259.99
About $180.