This is a step in the right direction for Apple. I know dozens of people who have broken their iPods due to abuse and the fact that most people don't realize how fragile HD-based players are. I already own the Creative Muvo Micro n200 and am quite happy with it. While only 1gb it still has many advantages which deserve highlighting:
Muvo n200:
True Plug & Play -- unrestricted access to mp3s and files, acts like a thumbdrive
Easier Loading -- No need to use syncing programs, just drag and drop directories/files -- each directory is a playlist
Smaller -- Muvo n200 is much lighter and still less than half the size of the Nano
Removable Battery -- I like the fact that I can carry extra AAA batteries for long trips, I use rechargeable batteries and they last about 10-12 hours each
The one major flaw with the muvo is that there's no bookmarking feature for huge mp3 files. I'm curious to see how Creative will respond to the Nano. And also, doesn't Creative now legally own the patents to some of Apple's technology?
-djspe
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EDIT -- Found a review of the Nano here:
http://playlistmag.com/features/2005/09/ipodnanofirst/index.php