Apple Insider heard Apple may soon unveil a new iPod player that will be capable of playing videos.
Their sources claim this device will be similar to the 60GB Apple iPod photo, but several millimeters thinner.
It's said this device has a smaller click-wheel like those of the nanos along with a larger, high-resolution color display.
It's expected Apple will also give a major update to its iTunes music store to add a significant number of music videos and short video content.
Apple is also said to be preparing a new AirPort Express wireless base station with a video out option. This may be an add-on module for the iPod video that will let users play videos on an external display.