Describes situation in which an individual receives a box marked as if it contains a desirable gift but which is actually empty. This can either be unintentional on the part of the giver, or (cruelly) intentional. A "denyPod Classic" refers to an actual iPod box. A "denyPod Nano" refers to a small jewelry box used in this manner. "denyPod Shuffle" refers to such a box used as part of a White Elephant
Note that "denyPod Touch" is an unrelated term describing teenage males getting shot down on the way to second base.
John was excited when he saw the package with the Apple logo, but it turned out to be a denyPod Classic and he was crushed.