I noticed this on another blog (sorry...unfortunately I can't remember where) but I ended up finding it on http://familyfun.go.com/crafts/rock-candy-675037/ . You can view the instructions on their site but I'm also listing how I did it.
Boxes of Sweethearts
Valentine Tootsie Rolls
Scrapbook Paper of Your Choice
Get the ipod template by copying this link http://familyfun.go.com/assets/cms/pdf/crafts/RockCandy_3.pdf and pasting it as your web address. It will allow you to change the songs to accommodate your choice of songs. Here is what their template looks like:
After cutting out the ipod template (make sure to cut the song box and wheel separately), I laminated them. Using a glue stick, I glued them to the front of the box.
Place in the goodie bag. I found lollipop bags that were the perfect fit at Michaels. Above the drawsting, there is the perfect spot to place the label in and staple it. The reason for the goodie bag is to keep the tootsie roll earphones from dangling everywhere. Tie the goodie bag. Staple the label/tag in the top part of the bag and there you have it. Here are some finished pictures.
I'll be glad to answer any questions anyone may have. I think the kids will have a great time with these. :)