I've been thinking about borrowing an idea from the DJs..

there is software available that will let you Queue a list of songs (Or pick on the fly from a list, like you want to do)

But the really cool thing about most DJ software is that it tempo adjusts the next song, and fades it in as it fades the other song out, so the same beat continues, and if people are dancing they won't leave the dance floor while you start the next song

Such software definitely exists for notebooks and Ipads,

if it exists for Ipads, then it probably exists for Ipods too