The first thing you’ll notice about the third-generation Apple iPod Nano ($199 for the 8GB version as of 9/7/2007) is its 2-inch display. How can you not? The display occupies more than half of the device–fitting considering that one of the big selling points of the Nano is it can now play video in addition to music. The second thing you’ll notice is its new shape: The Nano’s long, thin stick design has been replaced by a wider, stouter design that accommodates both the generous screen and Apple’s signature scroll wheel. And it delivers all this in the same impressively thin profile–about a quarter-of-an-inch thick–as the previous Nano.

The body is now a two piece affair — an anodised aluminium front with a chrome back — instead of the all aluminium version seen in second-gen unit, which we still prefer. Naturally the shiny back was a fingerprint magnet — Apple should really include a cleaning cloth with all chrome-backed iPods. Worse though was its lack of scratch resistance, after just a week the back was scuffed worse than a rugby player’s knee after sliding in for a try.

In terms of cutting edge features Apple has been behind the game for some time now. The past year has seen virtually every single other major manufacturer build in some form of video capability into their premium flash memory based players, so it’s good to see that this third generation nano has finally caught up.