Yes - you can bring your ipod with you - however, you will need a power adapter and/or transformer in order to charge it.
For more information regarding customs regulations for tourists please see: http://goisrael.com/Tourism_Eng/Tourist+Information/Planning+your+trip/Immigration+and+Customs.htm
As to medications, it is a good idea to leave them in their original containers - both for prescription and non-prescription items. It's also a good idea to bring additional prescriptions, signed by your doctor, in case you need to replace any medications. Another good tip is to make sure you pack all of your medications in your carry-on luggage so that you will have them available in case your luggage gets delayed.
Have a great trip.