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My experience of the new Nano iPod was not a good one. I bought it on the day of release as it looks really nice and is tiny, and can store over 1000 songs (depending on the quality / file size).
My first problem began when I tried to put music on it, itunes installed ok and the ipod was recognised but after about 2 hours of watching the itunes status bar saying the music was being uploaded i knew there was a problem. I kept getting error messages. It turned out that it was because I hadn't installed the latest Windows update for XP, but I was already onto my second unit as Currys (where I bought mine) replaced it saying they had had loads back with the same problem.
The support from Apple was poor to put it lightly, almost impossible to actually speak to someone, or even find a number to call, I managed to get through to someone who said the only thing they can do is tell me how to reset it as the product was really new, which to me suggested a rush on the launch.
I eventually managed to install it thanks to help from one of the 6000 people in the apple chat-room dedicated to this problem.
Apple have now released an update to itunes and the ipod firmware so if you have one bought in the first 2 months of release you can update the firmware via itunes, if you bought it after that then it will have the firmware installed. However I have still not had any replies to the 3 emails I sent asking for help on this matter, only an automated response saying they'll be in touch in the next 7 days (a very long time ago)
Overall: If you want one of these buy it new as it will have all the latest bug fixes etc. Make sure all your software etc is fully up to date on your computer too. They look great, and the price is cheap when you think you can store films, music or even use it as a hard drive to store files on.