WOW ! Thanks so much !
Here is what I found in the Digital Scrapbooking 5 magazine:
Step 1: Remove background from your photo. Use lasso and eraser tools.
Step 2: Create the page background and place your photo on it.
Step 3: Create the iPod effect ( the silhouette): Make sure your photo layer is slected. In the drop down box at the top of the Layers palette set the blending mode to multiply. Next, choose Layer> new Adjustment layer> Hue/Saturation. Check Group with previous layer and click OK. Reduce saturation to -100. Click OK
Choose Layer> New Adjustment Layer> Levels. Again, check Group with previous layer. Move the input levels middle slider all the way to the right. Clcik OK.
Add a new layer.CTRL click the photo's icon in the layers palette to select it. With your new layer selected fill the selection with black.
The article suggest adjusting the opacity slider to see a little hint of the image if you want to make it look like the iPod ads.
Like I said earlier- I haven't tried this yet so I don't know how easy it is to pull off but hopefully it will work for you. Good luck!
I'll give it a try.