Pros: small size, styling, user interface
Cons: the thin, squarish design is a tad hard to hold onto
The bottom line: You don't need a Macintosh to enjoy the elegance of an Apple media player/ipod. iTunes works on PC's.
My wife bought me a 3rd gen silver Nano 4 GB for Christmas. Superficially, this thing is beautiful and cool looking, much better looking than the previous iPods.

The Nano is a media player and will allow you to listen to music/podcasts, watch TV shows/video podcasts/film, play games, and view photos. You can also sync your To Do list, Address Book, and Calendar to it. Other capabilities of the Nano include clock, stopwatch, and alarm.

At first, I thought that perhaps the 4 GB capacity would be too small and was going to return ot for the 8 GB model, but I realize now that the 4 GB is sufficient. The purpose of this model is not storage of music, video, photos, etc.. You can store your media on your computer or HD iPod. The purpose is to offer an elegant media player at an affordable price point. I keep my favorite 200 songs and about 10 hours of video podcasts/TV shows on it. 10 hours of video (which lasts me 3 or 4 days) takes up only about 1 gigabyte. After watching all my video content such as podcasts or TV shows or films, I just connect it and load up fresh material.

The 2" backlit LCD screen is beautiful and detailed and highly watchable. Its small size is not a huge hindrance, since you usually hold it closer to your face. Obviously it is a lot smaller than your 25 inch TV, but your TV is 10 feet away from you.

The user interface is real intuitive and simple to operate. You merely scroll through the different menus/folders using the scroll wheel. There are obviously named folders such as "music", "podcasts", "video", etc.. Under "settings", you can adjust the equalizer, brightness of the screen, change the look and feel of the UI, etc..

The Nano comes with 3 built in games. The games are nice looking, graphics wise. They do become easier to play as you master the sensitivities of the scroll wheel. Klondike, a game of Solitaire, is one of the included games. iQuiz is a music and TV trivia game. Vortex is sort of like a 360 degree circular Pong or Breakout style of game. All 3 games are fun. You can download more games from the iTunes store for a nominal charge.

Cover Flow is great. It is nice to see the covers of your albums scroll by. When you find the album you want, all you do is push the middle button, and that album will start playing. You can also choose the Shuffle function from the menu which will play a shuffled mix of all your music.

I use the Nano all day in my job as a driver, mostly listening to music or audio podcasts via a cassette adapter over the van's audio system. While waiting at various places as part of my job, I spend about 3 hours per day watching video podcasts, films or TV shows on it. Watching video podcasts is a lot more satisfying than merely listening to audio podcasts. A lot of podcast programs serve their content up in 2 flavors -- video podcasts or regular audio podcast. The video podcast adds a lot to the experience.

Overall, the Nano is a great little piece of modern technology. Definitely a must have if you spend a lot of time waiting at your job or at Doctor offices or wherever. I even find myself watching video on it around the house. Of course, I could watch my video content via iTunes on my PC, but there's something satisfying about grabbing my Nano and leaning back on the couch to watch or listen to some content. Or going out to the outside deck and enjoying some media there while getting some fresh air.