OSX iPod and installation

I hav an iMac, the gum drop model. I'm currently running 10.2.8
and get iPhoto, iMovie and iDvd as part of the OS. My daughter
recieved a new iPod for Xmas only to discover that she cannot
use the movie feature with it. I must now upgrade to allow her to
use all the features of the iPod. But from the web page it looks
as though I do not get the programs as part of the OS anymore
and must purchase them seperately for $79 US dollars.
Is this correct?
$300 for the ipod
$129 for OSX 10.4
$79 for iLife

Unfortunately this is correct, the movie feature needs both iTunes 6 and Quicktime 7.0.3 - the minimum system for this is 10.3.9.
However, you do not need to but iLife as iTunes is a free download anyway.
You could buy a second hand Panther 10.3.x disk from eBay and save some money and ensure compatibility.
If your iMac is a FireWire model with a DVD drive you may go for the currently available Tiger but your existing iLife programs may not work.
Personally I'd go for Panther for now - you will be able to update this to the required 10.3.9 from any version using Software Update.
Hope that helps!

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