My rumor is that the next iPod nano will NOT be taller, like iLounge thinks, but rather wider. No more wheel. Just touch.
Posted here: http://nathanstocks.blogspot.com/2008/07/ipod-nano-touch.html
Also see image attached:
Posted here: http://nathanstocks.blogspot.com/2008/07/ipod-nano-touch.html
Also see image attached: