Wow given your choices I'd say get the iPod because you get the benefit of photo storage and look at that -- you get to take along your favorite music.
What a bonus!
I traveled to India earlier this year and you will probably want to take more photos than you can imagine now. I was there for work so I had the lap top with me. If I didn't have the need for lugging the machine with me I'd opt for the more easily carried device - the iPod.
I spent the majority of my time in the Mumbai area which was amazing for the sheer number of people that live there. People were every damn where 24 x 7!
A little advice for your trip (which I'm sure you'll get plenty but anyway):
- Take extra batteries (AA's or any other type you need for your electronics)
- Take the SHOTS because the immunization isn't as painful as the disease potential but for the most part you will be safe
- Take a dozen or two good protien bars that you can use to supplement your diet
- Practice eating Tandori cuisine by drinking hydro-chloric acid
It will bring the food you eat there down to just your average "hotter than hell" meal.
- Don't buy bottled water (or other soft drinks) from anywhere other than your hotel - and even then inspect the lid carefully to ensure it's not repackaged (remember to use the bottled water to rise your tooth brush).
- Milk is from the local buffalo so it's fat content is much higher - it taste great but it's creamier than what you might expect and again only get it from your hotel.
- Take a good insect repellent - I used Permetherin from passport health usa (both the cream and the clothing spray) and they worked very well.
