In theory it should be easy to put your Bible on your iPod because it only takes up the space equivalent to a few songs but the way iPods work means that it's not quite that straightforward.
According to the developer, podBible works using the Notes section of your iPod which can hold a far greater number of text files including HTML. In other words, the developer says its like putting a website on your iPod.Installation can be made on 3 iPod types - iPod Nano (1G-2G), iPod Nano (3G) and Classic and iPod Video. Simply double click on the device you want to install podBible for and you're ready to go. It's obviously important that you make sure you choose to install podBible onto your iPod and not your hard drive.
Unfortunately, when you install it you'll find that it podBible doesn't include the entire Bible due to text space restrictions in Notes. However, you do get The New Testament, Psalms, Proverbs and Footnotes. If Apple remove the restrictions on the amount of text iPods can hold then the developer will probably update podBible to include it all.
podBible isn't exactly the entire Bible on your iPod but for those that want some religious inspiration on the move, it's the best solution you'll find out there at the moment.