From Engadget:

Well, looks like Apple’s updating their iPod mini lineup too, but certainly not before introducing (yet) another addition to their iPod starting lineup—the iPod nano. It will feature 500 song/2GB and 1,000 song/4GB capacities, a color display, and, of course, a click wheel. The device is no more than 62% the size of the already diminutive iPod mini, weighs 1.5 ounces (42 grams), will come in black (as well as iPod white), and includes a few new niceties such as a nighttime inverse screen mode for the $199 and $249 pricetag. Dock ($29) not included, but lanyard headphones will be available for $39.

Also, the Rokr.

Interesting! That looks pretty hot. Too bad it’s not a video iPod though. Ever slowly we inch closer…