I've seen several iPod knockoffs, most notably from Asia. Some are pretty convincing in their look, though they oftentimes fall flat when it comes to features and just the overall construction of the players. Some, though were never meant to be seen by human eyes.

Engadget has posted a pic with a new line of them in Macau in Asia.

"It must be really great to live in Asia (Macau, to be exact) where you can get Apple's latest iPod -- like the iPod mini 2, pictured here -- literally months before it's announced. And for HK $950 (about US $120), no less."

Yeah, so ripping off an older line of iPods, I would imagine, isn't the greatest idea in the world. Still, some enterprising companies out there.