You should be able to load OSX on your mac with no problems. I was running my old 450DV iMac with OS10.2 for years. My iPod ran great with iTunes.
You can still get copies of OS 10.1, 10.2, or 10.3. Try ebay.
I still have a OS10.2 DVD disk that I used to load my old iMac. It was made for an eMac, but worked fine. You have to have a DVD drive to us it though.
If you want it drop me an email
[email protected]. I'll gladly send it to you.
Or, you could do what I did and buy a new Intel dual core iMac with OS10.4 installed, along with iLife. They go for around $1300 heree in the US.
Macs Rule!