It's sweet.

I picked one up this weekend, oh man, the form factor is so dang cool. From the pictures online, it looks small, but wait till you hold one. Wow. Simply amazing. Some new coolness:
    * Color screen - view photos too! The 1.5” screen sounds small, but it's amazingly bright and clear.
    * Sync Outlook contacts
    * Sync Outlook calendar
    * Album artwork on screen

The 2 GB model is $199, and 4 GB is $249. The boxed version from Apple even comes with an adapter to retrofit your dock from a 'traditional' iPod allowing the Nano to work with your existing one. Apple thinks of everything.