Apple iPod nano 8 GB Black (5th Generation) NEWEST MODEL - Reviews
Pros: Small, Long Battery Life, Good Little Screen, Easy to Use, Great Built Quality
Cons: Ok Sound Out, No Custom EQ, No FLAC Support
I have had my 5th Gen Nano for a little over a year now.  I use it EVERY day.  Both at home and in the car.
I used to have a 1st Gen Nano and LOVED it.  But it was either lost or stollen, so I then decited to "upgrade".
My issue is, not sure if it really is an upgrade in terms of sound output.  Not that the 5th Gen is bad, just that the 1st Gen seemed better.  I wish I could explain what I mean, but I did not have them both to compare back to back.
The 5th Gen is sleek looking with a great little screen.  In a pinch, I have even watched movies and TV shows on it.  Always has worked great for video files.
Has a few little games that come with it.  They are good to waste some time if needed. 
The output sound is my only small gripe.  It just seems to be missing something.  Though hard to put my finger on it.  Maybe it just does not put out that much power.  Whatever it is, it is not enough to bother me...  As I said, I use it every day.
For the first year or so, I only put MP3s onto it.  Then of late, I have started uploading Apple Lossless (ALAC).
MP3 vs. ALAC on the 5th Gen Nano:
Using both my Alessandro MS1 and Monoprice 8320 I noticed a few things:
- MP3s on the Nano seem warmer.
- MP3s seem to have a little more bass.
- ALACs are more detailed, but seem brighter.
- ALACs seem to respond better to the stock EQ settings.
Final thoughts.  Would I buy the 5th Gen again and/or recommend it?  Yes and Yes.  It does a good job all around and is very portable.  The screen and body seem to resist scratches.  It still looks brand new after over a year of use.  I love the long battery life.  I use it so often and rarely have to charge it.
It is a good little Audio player.