When we plugged in our iPod touch to iTunes 8, we were hit with a software update notifcation that led to a dead link. But now, we've got a line on what looks to be a live download path to the iPod Touch 2.1 software image. Here's the link—we're grabbing and testing as we post, and will update with details. It's option-click-Update time. UPDATE: It works. [Link - Thanks, mrhidea!]

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.

[Apple]

The world was fairly certain that the latest generation of iPod nano had ditched its squat appearance for another growth spurt, but today in San Francisco, Steve Jobs confirmed the rumor as fact on stage: The fourth generation iPod nano is indeed skinny again and it features an accelerometer. Innovation or identity crisis, here are the complete details on the device that's available now:

Form Factor
The new nano is tall like the original nano, but it's also curved like the iPhone. Available in 9 colors (silver, gunmetal, purple, blue, green, yellow, orange, red and pink.)

Storage/Pricing
The entire nano line has been bumped in storage under the same price points we already know, now supporting 8GB for $150 and 16GB for $199.

Voice Recorder
Woo! (Scroll down, appears to be in headphones)

Control
Integrated accelerometer notices landscape mode for Cover Flow, photos and video, and it allows the nano to be shaken to shuffle a random track. Holding the center button during a song brings up the Genius menu.

Battery Life
24 hours of music, 4 hours of video. Sounds similar to the old nano.

New Headphones
Include micro remote and microphone.

Green
The new nano is arsenic-free , bfr-free, mercury free, pvc free, and "highly recyclable."

The iPod classic looks like it's getting the runt's end of the "Let's Rock" magic wand today—with boosted storage to 120GB for $250, up from 80GB for the same price. And it's death for the 160GB thickie, matching the Zune's lineup to a tee. Same form factor and colors as last time. Now, the largest iPod money can buy has been downgraded by 40GB—seem like a strange move to backtrack like this to anyone else?

We're here at the Yerba Buena Center. Our liveblog's is starting at live.gizmodo.com. That's where you should be, either sitting back and letting the auto-refresh do its thing, or hitting that button like a mad man. The music is stopping, the lights are dimming, and Phil Schiller is being jovial. It's an Apple event. [Live.Gizmodo.com]

Shaking the player activates Shuffle Mode and tilting allows scanning of Cover Flow when the nano is held in landscape. The nano's storage will jump to 8GB and 16GB.

Not a lot of information on the iPod classic and iPod shuffle. The classic is said to come in two colors (probably white silver and black) with the shuffle available in five colors.

The iPod touch will have no color choices and retain the same storage options of 8, 16 and 32GB.

Oh, and the last juicy tidbit from the rumors: The new iPods are supposed to be available at Apple stores today. [AppleInsider]