Make a CD for your loved one. I did this one year for our anniversary. I have Itunes so this was super easy but I just went through the songs and got our favorites. I picked out songs we loved to sing together. It was fun.
You can also make one for the kids.
If you don't want to make a cd you could just add a playlist to Itunes and program it to the ipod.
Don't forget a label. I know there are ways to make it on a computer or I have also seen cd engravers you can get for your computer. They will burn an imagine on it. I don't know much about that though. I just used Sharpie markers and wrote I love you and the date I made it. (DO NOT USE REGULAR MARKERS OR BALL POINT PENS ON YOUR CD IT WILL MESS IT UP)
One other thing you could do is instead of music record yourself giving a special message or do a little of both. Most of all have fun.