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The two good things to always have are a camera to remember everything and an ipod for long trips.

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I agree with the camera, but disagree about the ipod. The ipod shuts you out from people. If you do bring a portable music player I would only use it when you are in your own room, or traveling on a train or plane where there is no one interesting to talk to.

I wouldn't recommend wearing the ipod around the hostel, that is a great way to meet no one.