We (the family) were at a car dealership that evening and to entertain my 3 year old I put the ear buds in her ears and gave her the iPod to rock out to.
Perhaps unsurprisingly, no one batted and eye or seemed to take notice of a little girl sporting the white earbuds that would become so iconic later.
Related memory after the iPhone had come out: I remember being on a train in Tokyo where, counting the two other Apple employees with me, we all three had our iPhones out.
Looking around the train though at all the Tokyo-ites with their flip phones and lanyards I began to doubt whether the iPhone was ever going to be able to conquer Japan. If for no other reason, where do you attach a lanyard?
(Or maybe there's a better term for that bit of "personalization" that dangled like a tassel from all the cool, urban Japanese flip-phones.)