Combination of an ipod shuffle and an old pair of headphones. (that's it!) The headphone wires are wrapped around the plastic of the headphones to leave absolutely zero dangling wires.
Step 1: Add Two-sided Foam Tape to Ipod
Cut two small rectangles of two-sided foam tape and place them on the inside surfaces of the ipod - on the "clamp" side of the ipod. The idea is to confine the headphones in a smaller gap, so that the ipod clamps tighter to the headphones. The tape does not fit such that it will stick to the headphones - it just fills the gap. Note that If your headphones are actually wider than the gap in the ipod clamp, then you may be out of luck using this instructable..
Step 2: Wind the Wire and Plug the Headphone Jack Into the Ipod - Done!
Get your old headphones - I prefer the sony walkman kind that fit into the ear and thus stay in place very well. Now just wrap up the slack in the left and right side speakers and plug the heaphones in - no need for any tying devices. The wire from one speaker will cross through the clamp of the ipod. Clamp the ipod so that the headphones are in the gap created in the last step. The ipod should clamp mostly shut and should move very little or not at all. Mine isn't a perfect fit and it wiggles, but has yet to come off, during the most vigorous of workouts (it's so lightweight, that it can't break free). It also does not get sweaty since it is at the highpoint of the body (unless you are super sweaty and your hair is drenched with sweat ).