The Apple iPod (with Color Display) effectively is a renamed version of the iPod photo that shipped with revised software -- featuring a "Podcast menu, including bookmarking within a Podcast and the ability to display Podcast artwork in color" -- and a lower price.

It uses either a 20 GB or 60 GB 4200 RPM ATA-66 hard drive, capable of supporting "up to" 5000 or 15,000 songs, respectively, in "128-Kbps AAC format", as well as "up to" 20,000 or 25,000 photographs, respectively, in iPod viewable format.

Although Apple considers this model to be a member of the iPod (4G) series -- and it shares the "ClickWheel" for navigation and the same basic case design (with an "iBook white" front and a chromed stainless steel back) -- it has a two inch diagonal 65,536 color LCD with an LED backlight, just like the iPod photo models that Apple likewise considers to be part of the iPod (4G) line.

It supports viewing photographs, optionally with synchronized music, on the internal display and on a television or projector using an AV cable via the custom headphone jack that is capable of video output (line out and S-video provided by the dock, which along with the AV cable, was sold separately). It also offers up to 15 hours of music playback and 5 hours of slideshows with music, although when compared to the iPod (4G), the skip protection is reduced from 25 minutes to 17 minutes.

All iPod (with Color Display) models are capable of immediately viewing many types of images transferred through the optional iPod Camera Connector (US$29).

Despite the age of this device, site sponsor OWC has inexpensive, compatible headphones and some upgrades and parts for vintage iPods while supplies last.
https://everymac.com/systems/apple/ipod/specs/ipod_color_20gb.html