The iPod Nano is the middle ground between the Shuffle and the Classic.  Since the Shuffle is geared towards younger users and the Classic is for those with larger music or video collections, the Nano is the perfect compromise for those that fall in the middle.  The Nano is now on its third generation and is the highest selling MP3 player in retail history.

The Nano utilizes flash memory to keep its size small. It comes in 8 GB and 16 GB versions as well as a variety of bright colors. The new Nano comes in a slightly warped shape and is a tiny bit smaller than the last version. It is lighter than the previous model, too. One of the primary hardware-based changes comes in the form of the battery. While some previous versions could have the battery replaced in some way, shape or form, the third generation Nano battery cannot be replaced easily. The battery is actually soldered to the motherboard.

The Nano is one of the first iPod devices that feature games on it. It comes preloaded with Solitaire, Parachute, a Music Quiz based on the songs loaded on your device and Brick. You can purchase additional games via the iTunes Music Store and load it onto the Nano. Depending on the generation of the Nano, other games may be preloaded onto it when purchased.

The Nano's connectors are on the bottom of the device as opposed to the top, like other models.  This means that most accessories do not work between old models and new Nano ones.  The new Nano can also be turned sideways to watch videos in widescreen format; it will also allow you to surf through album artwork similar to how the iTouch works when turned sideways during album view.  These changes make the Nano even more appealing to those looking for a MP3 player for the first time.