iPod, squashed it down, duplicated it, colorized it, and then pasted the copies in a playful circle. But what -- just what -- if you're actually looking at the 3G nano? According to 9to5Mac (and at this point only according to 9to5Mac), Apple's next move on the iPod front will be short, squat, and muted-pastel colorful. The site previously reported that the new color scheme will come in a variety of shades not dissimilar to what their "spy shot" shows, so at least their own info lines up. Other than that? No corroborating evidence from Apple, and no leaks from other sources indicating this direction... let's just say we wouldn't make any bets on this particular piece of news.
Update - We've gotten our hands on a nice, large version of the picture, and as many of our astute readers have already noted, you can clearly see a window heading which reads "nano-flower.psd" at the top of the shot, which should give further pause to anyone taking this at face value.
Update 2 (August 23) - Our machinegunnin' lawyers advised we pull the original image, but we've replaced it with a mockup. Full story here.