decision making for ipod touch 16gb?

so im getting an ipod touch online, but am unwilling to spend the $400 that apple demands (plus $20 for the software upgrade)

i did some research and amazon.com is selling the 16gb touch with software upgrade…however i cant decide which one to buy:
completely new and sealed: $350
refurbished: $298

im pretty sure neither has a warranty so thats not a factor, but does anyone have an opinion about which to buy?