sell the ipod nano and go get a ipod touch well that is what i would do
Most stores do not carry 16GB iPod Touches in-store. However, if you go online you will easily be able to find a 16GB iPod Touch. The reason they do not carry it is because the price difference between the 8GB and the 16GB, and the 16GB and the 32GB, is so small it makes the model less popular and pointless.
eBay
iPod nano 1st gen brand new sell for about $95 American dollars
It depends on the condition, the capacity, and the generation of the iPod.
about $150
Many companies sell iPod Nano accessories. These companies include Apple, Best Buy, Amazon, Walmart and many other stores both online and offline. Just about anywhere someone goes they can find a retailer who is selling accessories for the iPod Nano.
The software on iPod Touches can be upgraded (the latest software is 3.1.2) however if the hardware is upgradable is unknown. The hard drive (8GB, 16GB, or 32GB depending on your iPod) cannot be upgraded due to the fact that the hard drive is soldered to the iPod and cannot be removed.
It depends on the generation of iPod Nano and the condition it is in. For a 5th generation iPod Nano in an okay condition (scratches and wear somewhat evident), you would probably get around $80 dollars for it.
In amazon: 8gb: $331 16gb: $499
I don't think so, you have to buy an ipod touch, you can sell an ipod nano to get the money, but cannot trade it in, unless someone else who has a touch wants to trade (probably not)
keep in mind that iPhone monthly bills are expensive