I bought my 8 year olds the Creative Lab Zen Stone Plus. I got a 2 pack deal from Dell for under $90.00. The Plus is the 2G version, has a small display screen and also has a radio, clock and voice recorder...though they only use the MP3 player and radio so far. They love it and call them their "Ipods". They come in several color choices and mine also came with a cover to protect against scratching. There is also a smaller 1G version that runs around 35 dollars.
Overall the sound quality is very good, louder than any child needs to have it really. It comes with download software, but you can also just rip the songs right from windows media player. I think it's a very nice starter player and for the price I don't think you can beat it.
You can put anything on your computer into your MP3 player. So if you have CD's you like you can copy them in too.
I crossed the shuffle off my list, not really for the price (though I got 2 for just over the price of 1 shuffle) but because the shuffle is so small. I knew my boys would misplace something that tiny. It really is not much bigger than a quater in size. The Stone Plus is around the size of a 9V battery...so still small and light, but not microscopic. I also knew my kids wouldn't like not being able to control the song order or see the title of what was playing. One tends to like to hear the same song over and over (which is one reason I bought him an MP3 player...so I don't have to hear it. LOL)
I told them we'll upgrade to video Nano's when they show me they can take care of their cheaper versions. They have no complaints and take them everywhere.
My only regret is I didn't buy the wall charger. It can be a pain to have to charge them both in a computer each time.