The only negative to listening to audio books on an iPod Shuffle is that it lacks a display. If you lose your place in a four or five hour audio book file, it can be awfully hard to find it again without a visual cue as to where you are in the file!
I have an iPod Nano (1gb first generation) that's great for listening to audio books on. Since you don't need to use high bit-rates when recording audiobooks, 1gb will hold several hours of audiobooks. (I think I have about 40 hours on mine right now.) I bought it used off of e-bay about two months ago for $25.
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