There are real iPods available here and many, many knock-offs. Real iPods are cheaper in the U.S.A. than here, but am not sure how they are priced in Australia.

The last time I looked here ( 3 months ago ) the prices here were:

5,500 - 6,200 THB for the 1 Gb Nano iPod
7,500 - 8,300 THB for the 2 Gb Nano iPod
9,500 - 9,900 THB for the 4 Gb Nano iPod

There is a technology forum here in FT where experts can advise on the available solutions.

It would probably be easier to just give them gift cards from the local electronics store and let them buy what they want?