If you can’t afford an iPhone (or don’t want to switch to AT&T) , this handy gadget will turn your iPod into a headset for your current cell phone.

The western world is still salivating over the iPhone, but the biggest capacity of that must-have device is 8GB. For those of us who are attached to our 30+ GB devices, already tethered to another smartphone (hello, corporate Blackberry users), or would rather avoid AT&T, BluEye is a good — although not perfect — way to get the best of both worlds.

BluEye is an ingenious widget that looks almost exactly like an iPod remote, clip included. But the addition of a Bluetooth button shows the causal observer that it’s more than a handy way to pause and control volume without fishing your iPod out of your pocket. What BluEye does — and does very elegantly — is turn your iPod into a hands-free headset for almost any cell-phone (so long as the phone has Bluetooth, of course).

BluEye routes calls from your cell phone to your iPod. The iPod announces an incoming call with a chirp over the music. Pressing the central play/pause button pauses your music and answers the call. You can even see who’s calling you, thanks to a caller ID displayed on your iPod screen.