Update: Okay, we've gotten much more quality time with the nano, and we'll admit that after some brief practice, the menu navigation is nice both going in and out of menus -- holding the middle will take some getting used to, if only because you gotta avoid any other on-screen items that beckon for your digits. Probably due to the small size of the screen, there is no pinch-to-zoom for photos. Instead, we're using a simple double-tap motion to a fixed zoom in / zoom out distance.
The clock app has a very easy-to-read analog style to it, and swiping across the screen will give you a stopwatch and timer. There is no alarm clock, however, which as the Apple rep explained to us was a design decision given its lack of an external speaker. Bummer, as it's the perfect size to strap on a band and use as a wristwatch -- a fitting thought, too, given one of the settings will let us see the time every time we wake up the screen. Check out our video tour after the break.
iPod nano (2010) first hands-on!
More iPod nano (2010) hands-on shots