thinking of an ipod nano

I won a $100 gift card to my campus bookstore. I'm debating picking up an 8Gb Ipod Nano. I have a couple of quick questions:

In the way of MP3 players I've always felt like Ipods were over priced. Are they worth the extra cash?

The mac Buyers Guide says that an update is due soon, how much might I expect to save on the previous model?

I overheard a salesmen say that apple does an Ipod sale in early June, is that true and how much would it save?

Thanks for your help!