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You absolutely do have the right to recover the iPod or have her pay you the agreed amount. By entering a bid and winning the auction, this woman entered into a legally binding contract (provided she is/was not a minor).
By failing to pay you, she has breached the terms of the contract. You may sue her in small claims court. Ideally, the best place to sue would be in the local courthouse of the county in which this woman resides. You do not have to sue there though. Your claim would be for breach of contract, conversion and unjust enrichment.