Remember the iPod is called the "touch". There are a lot of iPods out there so be sure you look at the one called "touch". It opens Word documents through email and you can download an application to store them. The real easy way I do it is to save everything as photos and put them in a folder, then when you set up the "back up" through itunes (web site) it will copy everything in the folder on your computer to the Touch.Costco has them in either 8 or 16 meg. I've found that the 8 meg is fine.
It sounds a little diffucult but once you get started, it works great. I also keep 4 email accounts on it. The touch needs a wireless connection for emails.