This new Nano—the 5th generation—comes in the same 8GB/16GB sizes as the last one (and the one before that, actually), though it costs slightly less than the original price of the 4th generation Nano (which was $150/$200). The $20 price drop is nice, but we'd have preferred a capacity bump with the same price. Correction: This section originally compared the 5G Nano's price to the very recently discounted 4G Nano's price( $130/$150)—but as that price was only in effect for a couple days, it's more accurate to compare the 5G price to the 4G's launch price. Sorry for the confusion.

Body

The new Nano has the same body as the 4th generation, but there are definite changes afoot. The screen takes a bump from 2 inches to 2.2 inches—a jump that may sound tiny but is surprisingly substantial. If you're used to the old 2-inch screen you'll definitely notice and appreciate the extra space for navigation. The resolution goes from 240x320 to the oddball 240x376. Though wider when viewed lengthwise, the new screen still isn't 16x9; even widescreen videos will be slightly letterboxed due to the unconventional size. Aside from the added real estate, it's also noticeably brighter and sharper than the previous model. It may still be too small to watch a two-hour movie on, but it's a pleasure to use for everything else, including shorter video clips.

Unfortunately, that larger screen comes with a caveat: The click wheel is even smaller than earlier Nanos. If you found the previous Nano's click wheel slightly thinner and harder to hit than you prefer, this will be even worse. If you had no problems before, then the slight decrease in size shouldn't affect you much. I personally found it too small, and my thumb sometimes hit the area around the controls instead of the control itself. This is especially true when the Nano is docked.

The anodized aluminum finish is also a little different—there's an added step in the process that makes it shinier and brighter than the previous generation's comparatively subdued matte finish. Oddly enough, it actually feels slightly lighter than the last model, though no less solid—this is an extremely durable player. It doesn't bend under pressure from any angle and a nerve-wracking fall onto a hardwood floor had no adverse effects. However, I found that sharp metal objects like keys will leave scratches, while the previous matte Nano showed no scratches under similar abuse. One bit of bad news: People who hated the sharp corners of the last Nano will have to put up with them for at least another year.

Features

Did I mention Apple crammed a bunch of new features into the iPod Nano 5G? And that the most notable—and most thoroughly leaked—is a video camera? Here's the rundown:

Video Camera
The big selling point of this Nano is that the video camera theoretically puts it in a position to compete with the Flip, Creative's Vado, and Kodak's Zi6 and Zi8. Steve Jobs said so himself. But is it true? Well, yes—and no.

Like the Flip-class cameras, there's no optical zoom, and it can't take still shots (very few of these new camcorders can). Also, there's no on-device editing, just the option to delete what you shot. It too has video output, but only if you buy the right cable.

But the Nano is limited to VGA resolution—640x480—far less than that of current HD pocket cams which hover in the same sub-$180 price range. Casual videos meant for YouTube may not need more than VGA, and Apple sort of makes up for it by adding creative video filters, similar to those found in iChat and Photo Booth. These aren't just for fun, they tend to cover up the limitations of the video itself. On the other hand, if you're shooting your baby's first steps, or anything meaningful, no matter how short, you might end up regretting that you didn't shoot in HD.

That being said, it's a remarkably high-quality camera, as good as standard-def pocket cams like the Flip Mino (which I used in the comparisons below).

When you hold the Nano, you discover that the lens is placed in an awkward location—the lower right corner of the device's back. You can rotate it and the accelerometer will adjust, so it can actually be held in any way you choose, but the natural motion is to turn it 90 degrees counterclockwise (so the screen is on the left and the click wheel on the right), which leaves your fingers right in the lens's way. You get used to it, though. It's annoying but not a dealbreaker.

In video-camera mode, you can bring up those creative filters—cyborg, security camera, film grain, tunnel vision and more—by holding down the center button. They fit right in with the idea of the Nano as a quick-and-dirty camcorder: You wouldn't want your serious short film to have a red, pulsing cyborg filter, but it's really fun for 30-second clips. Speaking of which, the only limit on video length seems to be the remaining memory in the Nano itself.

Here are a couple comparison clips. This first is low-light, notoriously difficult for any budget camcorder to capture.

The Flip is far better here: You can actually make out the features of my kitchen with some certainty, and while it's blurry it's still watchable.

The Nano's low-light video is pretty much pitch black until I hit a patch of light, and it's extremely jerky. I should add that the kitchen wasn't really that dark, but it looks like that tiny sensor is just no good for situations with less light.

This pair of clips is to demonstrate macro. The Nano is actually a little better than the Flip here, with a sharper closeup picture, although color reproduction is a little more accurate on the Flip. Still, closeup shots are difficult and I'm really impressed with the Nano's clarity here. Here's the Flip:

And here's the Nano.

This last series is what most people will likely use the Nano's camera for: Shooting with a decent amount of light, natural or artificial. It's not quite as good here as the Flip—notice the tearing in the video as I pan, and again, color reproduction is a little darker and muddier than the actual object. But given that the Nano's camera is a tiny little lens crammed into an already-tiny music and video player that you may be intent on buying anyway, I'm really pleased and a little surprised at how well it performs.

This is the Flip:

And this is the Nano:

The microphone does a pretty good job at picking up sound. Speech is totally audible and it's sensitive enough to pick up a fairly quiet conversation 10 feet away. Wind shear can get really noisy, unfortunately, but unless it's incredibly windy it shouldn't be much of a problem.

So is the Nano better than a standard-def Flip? No, it's not: Besides poor low-light performance, the straight video quality is slightly inferior and there are no features like digital zoom (which some people like). This is a PMP with a camera, not a camera that plays music. But should Flip be worried? Absolutely. If you have a Flip already, you may not be swayed to purchase the Nano because of its video, but if you buy the Nano, you don't really need a Flip—and Apple's going to sell boatloads of these Nanos for reasons other than video camera anyway. Speaking of which...

FM Radio
Defiantly coming dead last to the FM radio party, Apple finally bestowed an iPod with a real FM radio, not some costly optional accessory. Why did Apple cave? Every single other mp3 player since about 2001 has had this. Your guess is as good as mine. The addition was announced without fanfare or explanation at the Nano's unveiling, and the tuner itself doesn't bring any new features like HD Radio, but it does come in with a suite of features proving, at least, that this wasn't an afterthought.

The radio gets excellent reception, though you have to use your headphones—not just Apple's white earbuds; I used my Shures—as the antenna. There's support for RDS data (station name and song title). That song title data can be used to tag favorite songs so that you can, well, buy them later on iTunes. The coolest radio feature is "Live Pause." You can pause a program for up to 15 minutes, and it caches it to memory. It's really nice addition, and you can even fast forward through the cached content, though you can't truly record and save radio.

Built-In Speaker
That's right, there's a teeny little speaker on the bottom of the new Nano. It's not particularly loud or high quality, but it's damn impressive that Apple could cram it into such a thin player. It's definitely audible in quiet rooms, although you'd probably want to use it for spoken word or video rather than music, as songs tend to get washed out and distorted. Still, I have a feeling I'll take advantage of the speaker even more than the video camera—there was one on the Samsung P3 and it proved extremely useful for those times when you want to share a quick video, or don't feel like plugging in earbuds.

Pedometer
It works, mostly, though it's not a substitute for Nike+. Even Apple says you can't use it for running. I tested five sets of exactly ten steps, and it registered the correct amount twice, but it also registered nine steps twice and thirteen steps once. It'll probably even out for longer walks, but you will never get perfect accuracy. It's still kind of fun, though: Turns out my nearest coffee shop is only 278 steps away from my bedroom, and I burned 14 calories getting there.

Voice Recorder
Using the built-in mic, you can record little voice memos. Sound quality is okay, but very limited by distance. I tested from different distances and found that while about one foot away from the mic, talking at a normal conversational volume (as in an interview or quick voice memo situation), sound quality was very audible and clear. From five feet back at the same volume, it was still clear but soft enough that the volume had to be upped quite a bit. From ten feet back it was still clear but only after I plugged it into my stereo and cranked the volume. When recording very loud music from a bit of a distance (sorry, neighbors!), the volume was fine but the recording came out way too distorted to be worth listening to. It looks like the recorder would be a good tool for memos or lectures, but forget about recording concerts with the Nano.

The Verdict

The iPod Nano is the best-selling MP3 player of all time, and this new model should keep that record alive. It's still an incredibly small and thin player with intuitive navigation and popular software, priced competitively. The new features are really nice—the video camera is good in a pinch, enough to supplant standard-def pocket cams—and the bigger, brighter screen makes navigating through the added options.

The video camera is a major feature addition, but this Nano is still an incremental upgrade. Apple hasn't changed the capacity or price in years—does it really not make sense to release a 32GB version? The 8GB version, only $30 cheaper than the 16GB, seems undesirable and outdated. But at this point what else could Apple add to the Nano? I'm just surprised everything they have added actually fits.

The iPod Touch and other full-featured touchscreen players like the Zune HD and Sony X-Series are the big attention-grabbers these days, and the Nano will surely be left behind as dedicated media players yield to convergence. The steady price and capacity of the Nano and the dropping price and skyrocketing capacity and functionality of the Touch signals the sea change better than anything: Soon the Touch will be top seller, and the Nano will slip into being a niche product for people who really prefer small form factors. There is much speculation that the Nano got the video camera—and the Touch did not—in order to slow this inevitable decline.

So the big question: Should you buy the Nano? Yes, if you want an easy-to-use, slick, full-featured and small PMP. No, if you just want an 8GB vessel for your MP3s.

If you're in the market for both a PMP and a cheap pocket camcorder, it's definitely a "yes." But think it over. If you've got last year's Nano and you have an interest in decent video quality, better to spend the money on a Kodak Zi8 (or the newly discounted Zi6). Or just wait for the iPod Touch to get a camera—now that's an upgrade. The camera alone isn't worth $150 or $180 if you've already got every other feature—maybe that's the reason Jobs himself said it was "free."

Retains stylish and durable form factor, with bigger and better screen

Camera is surprisingly good and really fun

Price is very tempting considering camera addition

Design, battery life and UI are unchanged, but still good

Capped at 16GB capacity

[Complete Coverage of Apple's Only Rock and Roll Product Launch]

Apple's decision to transition from the fat third-generation iPod nano to the new svelte fourth-generation iPod nano must have been an easy one. The latest version has the same size screen, the same 8 and 16GB storage and the same video support as before, but adds a much more comfortable (sorta) oval shape, a curved screen, an accelerometer and most importantly, a much improved user interface that aims to solve some of the limitations the Clickwheel has compared to the iPod Touch and iPhone UIs. This evolution succeeds beautifully, even if it's relatively minor.

The hardware:

The very first thing you'll notice is how much better the curved aluminum body feels in your hand, even compared to the very similarly shaped 2g nano. The brushed metal feels great, looks great, and is much less scratch-prone than the shiny silver backing in the 3g fat. It's also thinner, because it tapers off to the sides, but it's as thick at its thickest point as the entire body of the previous generation. There's slightly more glare from the screen because it's curved to be flush with the surface, but that's nothing you can't live with. Aesthetically, it's a lot nicer looking than the previous flat screens.

Pocket-ability is definitely important in nanos, and it's less conspicuous in your pocket than the 3g fat version. Unless you have really tight pants and have your pockets up to your stomach, you will most likely not even notice the difference between the two. But if you do do this, watch out. The sharp edges on the top and bottom—a result of constructing the body with one piece of metal and having caps at the ends—are likely to draw blood when scratched directly up against the flesh. So let that be a warning to you, shirtless guy who has his really tight pants hiked up way too high. I didn't think it was a big deal, but Lam carved the word iPod into his table with the edge to prove a point, that it WAS really sharp.

An added accelerometer also brings some iTouch/iPhone functionality to their little brother, which is well integrated where it makes sense. Rotating to landscape mode is as fast as it is on the iTouch/iPhone, and the subsequent Cover Flow view is baby butt smooth. Games, which were on the nano before, can also access motion-sensing. The built-in marble maze game is as good as the ones we've seen in the App Store. The "shake to shuffle" feature picks a random song when you jiggle the nano, but is smart enough to not skip tracks if the screen is off or if the hold switch is on. You can of course disable the thing entirely if you're listening to music on a bulldozer.

The software:

The portrait UI is also a great improvement over the the fat nano landscape UI, and makes much better use of the available real estate. (The older nano rather awkwardly tried to fit two columns on the screen. This only has one.) The new menu and display fills up the entire top half of device, which gives you more list items at once. Scrolling through menus and Cover Flow is as fast as we've seen on any iPod.

On-the-fly genius playlist creation, which recommends music already on your device based a starting point of any song in your library, worked well. When generating one from MGMT's Electric Feel, genius recommended The Shins, Arcade Fire, Radiohead, Beck and Damien Rice. Not exactly the same genre or song type, but someone who listens to MGMT would be likely to enjoy all these other artists. And that's the point. Apple's basing their recommendations not off of analyzing the individual tempo or features of a track, but off of purchasing history and many customers' music libraries. It's too early to say whether this method is better or worse than Pandora's, which we love.

The new nano also comes with a Voice Memo app that works just like the Belkin devices currently on the market. It's too bad that you have to pay $29.99 for a pair of headphones that actually have a mic on board; the default ones are just standard earbuds. Voice notes to yourself, with the microphone just hanging from your ear, is plenty loud enough to understand exactly what you say. Recording conversations with someone across the table isn't as good, but if you pump up the volume you can make most of it out. Clicking the center button also inserts "chapters" into your recording.

This generation comes in nine colors, which include pink, purple, black and silver, but no white. It's also the first nano to use solely USB charging, so old Firewire chargers are rendered useless. If you're into Apple and looking for a midrange media player, you should have no hesitations in picking one up. Otherwise, your current player will do just fine. [Apple iPod nano]

• You can't adjust volume when in landscape mode because it's locked into Cover Flow. Tough to adjust blindly when you've got the iPod in your jacket.

• The headphone output volume is slightly louder than the iPhone's.

• Shuffle by shake does NOT always work reliably. Lam looks crazy shaking this thing waiting for it to make the chime sound indicating its being shuffled. Also, there's a great chance that most people will never know to shake this thing—there are no indicators in the UI to let people know this is a command. (If you're buying one for mom, better show her how its done.)

• The glare due to the curved screen is more annoying outdoors, where you not only get glaer, but a slight warping of the glare like a funhouse mirror.

The new, thinner and smaller iPod nano really is smaller, thinner, and feels much better in your hand. Brian, our hand model, has small hands, so you can see how relatively small the unit is. The aluminum is slick, but the clickwheel might be slightly too slick, and not as grippy as previous models. The UI though, is fast and responsive—maybe even more so than the previous fat nano generation. The scrolling album art on the main menu is at the bottom, and not on the sides like before.

The accelerometer is as good as on the iPhone or iTouch. Landscape pulls up right away. The album art is gorgeous on the curved screen. Genius is good, and is easily pulled up by holding the middle clickwheel button. Scrolling through music is fast, and pretty much retains all the iPod clickwheel functionality you're used to from previous generations. It does have slight improvements as we noted in the liveblog—holding the middle clickwheel button gets you shortcuts to many functions—but all in all, it's what you'd expect from an iPod nano.

Comparisons vs. previous gen:
The screens are almost exactly the same size if you turn the fat nano sideways. The new nano is as thick at the thickest point as the fat nano, but tapers off to either side to give an overall "more thin" feel. The back is aluminum so MUCH less scratchy (think 2nd gen nanos).

An interview with Apple brought up these facts to the table:
-It's the thinnest iPod ever, and the smallest nano by volume
-Black, a new matte color that is slightly slate-ish, and Silver, get black clickwheels.
-The Pink is BACK and the Red is project RED.
-First iPod nano that uses USB charging only, so older firewire chargers from docks a few years old will not charge the new nano.
-Shake shake to shuffle will not activate unless screen is active and hold is off.
-Clickwheel orientation does not shift when you use the accelerometer to switch to landscape mode. Joz says that the menu button is always in the same position, and that's not a problem because in landscape, you're usually scrolling.

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