Go check out CNET and their reviews of 19 in monitors. the Ipod is cool, but think about how much you travel. the superdrive is cool as well, and I think it's well worth the money. But I do video for money, so it all depends on what you will use more
you will always use a monitor. (untill they go with nural implants, but I think that's a way off.)
There are several there that are within your range. (going by the iPod = $400)
that is, unless you are going with the LCD
Then I say gget the monitor.
Actually, if you want to save money, get the hardware from apple, and max it out by going with after market stuff. like
www.ramseeker.com and look at
www.dealtime.com and
www.epinions.com and
www.cnet.com and even
www.ebay.com
they can all give you help finding stuff cheaper, and still with warranty. I found a 17'in apple LCD screen for $800 that gave me $200 more to play with, and get a burner.
Anyway