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The latest pre-MacWorld rumor (along with the one about smaller iBooks) is that Apple is planning a 1GB iPod nano. The idea is to make this player a bit more affordable. The downside for Apple—and, again, this is all speculation—is that it would eat into sales of the shuffle. Wait, people are still buying the shuffle?

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In other news, McSweeney's recently snagged an exclusive look at the iPod Zepto. It holds 12 million songs and is only one-tenth the size of the head of a needle. The battery lasts for a full 12 minutes.

1GB iPod nano Mooted [Trustedreviews]