Jim Younkin has completed this fun (if simple) hack to cram an iPod shuffle inside of a pair of $1 thrift-store headphones. The result? An iPod shuffle crammed into a pair of... Anyway, that's the beauty of flash, Apple or otherwise: it's so small you can cram it into all sorts of odd places (especially when it doesn't have a screen, for better or for worse).
Pimp My Shuffle - Retro Cordless Edition [JimYounkin]
Update: Here's an even more simple way to wear the shuffle with a stocking cap:
Shuffling Hat [Smallegan]