The Budcozys I posted the other day got an overwhelming "Leave It" response, so I figured I'd share an old Lifehacker tip on how to keep your iPod cords untangled, no new product to buy or anything. I like to call it the "Lifehacker Devil Horn Hand Wrap." And trust me, the title's much more complicated than the technique.
You make a devil horn with your fingers as in the diagram, hold the earbuds down with your index and middle fingers, and then wrap the cords around each "devil horn" like a figure eight. Take the last six inches of cord and circle it around the figure-eight wrap. Take it off your fingers and it's a nice little package that unravels with no knots at all. It may not read simply, but it is once you get the hang of it. If I can do it, you can definitely do it.