You should consider selling this stuff on ebay. I sold my iBook (600 MHz, but more RAM, otherwise identical to yours) for $1150 on eBay. And you can probably unload the iPod for $350 or so.
But, if you don't want to go that way, I'd consider taking the iPod off your hands. I'll give you $250 for the iPod, if it's the new touchwheel version (not the moving scroll wheel).
Jason