Well, mostly. It's an iPod mini dressed up in wood, and the clickwheel happens to be wood as well -- check out this gallery at the Sydney Morning Herald. Australian modder Josh Darrah whipped up this crazy wooden skin for his mini, and a wood dock to boot after calling the metal and plastic case materials normally coating iPods "crass." The flannel carrying case he made is a nice touch, too.
Good news if you'd like one of these for yourself: Josh is considering a DIY kit to mod your own iPod.
Thanks to Leighton Johannesen for the tip!