Apple does not support Hebrew in iPODs. Edo Mendelson, an Israeli developer has programmed a free application that enables using Hebrew font on the iPOD. "Yeda", Apple disributer in Israel, doesn't support any of the iPODs that needs technical support after using his software.
Meanwhile, A group of Israeli iPOD fans have started a petition calling Steve Jobs & Apple to support Hebrew in their product. 200 supporters have already signed it.
For financing the work on his software, Edo is starting to sell branded blank DVDR/CDR media: