Waoo, this is really cool. I got an ipod too in the beginning of the year and I'm really happy with it.
They'll probably note the fact that LM plays MP3 but only records in OGG. This is a decision we made to push users in adopting open formats without preventing them from doing what they need (namely listen to their mp3).
It's important to mention that iPods do play OGG files. Just because the Apple OS that comes with the IPod doesn't support OGG doesn't mean the hardware can't handle it. Rockbox can be installed very easily as a dual boot with the original apple firmware on the ipod and it has no problem reading OGG files.
Rockbox is also themeable and it does look much better than the original firmware.
Good luck to all the people you mentioned and I hope they'll enjoy Bianca/Cassandra.