I picked up one the new nano's yesterday, I am blown away......

Yes it has a video camera, but thats not what matters to me, it works like everyone says, but yeah your fingers really get in the way.

Its all the other stuff you get though, which swung me.

If you like radio, the FM receiver is good (headphones only), and the addition of the 15 min skip facility turns the Today programme into an instant podcast. UK owners don't get iTunes tagging, but we get the BBC so thats a compromise I am prepared to make. I would have loved to seen AM as an option, but reckon that is far too old skool for Apple (sigh)

The pedometer works, and shows me I need to walk more. You can leave the pedometer on all the time, it may affect battery life, but as I own an iphone, Dealing with battery drain is part of my life anyway. Beside, the power drain on the nano is already better than the iPhone by an order of magnitude.

Voiceover and spoken menus are a boon if your listening in the night, especially for those of us who have light sensitive partners.

Mainly though, and it really did knock me sideways, is the audio quality. It's stunning, easily besting my iphone 3G.

Audio is crisp and clear. There is absolutely no hiss especially using a decent set of buds, (I am using a set of etymotic hf2's, which have the inline controls which can skip a track forward).

This is the first time I have owned a 'wheel' iPod for a view years, and maybe the novelty will wear off, but for listening and accessing audio the old ipod system is quicker than the iPhone's, especially with Genius mixes, as well as the facility to have more options available on the top menu than you get in the iPhone OS.

Oh and it syncs infinitely faster than my iPhone, which 1st thing in the morning as your rushing to get out the door is brill!

I will be using the nano instead of my iphone 3g for audio. Since it takes up zero space compared to the iphone, its no burden to carry it around at the same time as the iPhone, and that way you get the most out of the pedometer too.

Another purchasing reason, was our home speaker set, (the excellent blok revo), isn't iphone compatible. This means I lose phone functionality if I want to fill our lounge with my music, which isn't great, with the nano's better audio chops this is now no longer an issue.

In fact, the nano (if you own an iPhone 3g), is a good alternative to upgrading to a 3GS. Your getting better audio, video camera, an always on pedometer, FM Radio and no horrendous upgrade charge (cheers 02, but I will wait to either you lose exclusivety, or the iPhone 4g pops up next year).

The only criticism I have is why no 32gb model........, that, for me, would have been the perfect iPod.