I could not resist, having video on an iPod the size of the new Nano was just too tempting…so I got one. As soon as I connected it to iTunes, it prompted me to install the software update that was made available a couple of days ago, after that it synced music & videos, and off I went.
Much to my surprise, this afternoon it started behaving erratically – whenever I pressed the fast forward or rewind buttons, the iPod would keep skipping in the same direction until either the end or the start of the song was reached respectively. One annoying thing is that the skip steps are much bigger than on the previous Nano, and so it makes the process less accurate. Combined with this bug, it’s unusable. The only way to stop it is to pause, and resume playback, and since the steps are so large, it’s a hit-and-miss proposition.
Here is a short video showing the behavior.