iPod Nano 3rd Generation
Of course I snapped myself up a 3rd Gen iPod as soon as I could.
Video, games and a tasty new interface plus it's really tiny (about 1cm wider than 2G and 2cm shorter)
Love it to bits, now I just need to re-encode all over my video to work on it!
Update: This photo has been used on Wikipedia to on the ipod nano page: en.wikipedia.org/wiki/File:IPod_nano_3g_black.jpg