Sort of. By that we mean that the works with the latest iPod touch just as it does with the iPhone 4. It won't allow you to import pictures from a camera or media card to your iPod touch, but if you string a dock connector cable between the iPod touch and the connector attached to an iPad, the iPad will recognize the iPod touch as a source for images. The iPad then displays the images on the iPod touch in the Photos app as if the iPod was a camera, allowing you to import those images to the iPad.

The iPod touch ships with iOS 4.1. That software update--which is also set to arrive for other devices next week, probably at the same time as the new touch starts shipping--adds a number of features to iOS 4.0. The most significant one as far as the iPod touch is concerned is AirPlay support. That's a renamed version of the AirTunes technology that let you stream music from iTunes via an AirPort Express. iOS devices such as the iPod touch will be able to stream music videos and photos. (Hence, the name change to Air rather than just Air.) But that feature isn't specific to the new touch--other devices running iOS 4.1 will have AirPlay support, including older iPhone and iPod touch models.

It's gone, just a year after Apple introduced it in the previous generation of nanos. The company hasn't said why--you probably wouldn't make a big deal out of features you removed from a device, either--but we're guessing that the nano's video capabilities never really caught on. Certainly, our found that video quality was acceptable for shooting spontaneous video of family and friends when you were out and about, but that it didn't measure up to what you could expect from a pocket camcorder. Also, Apple seems to have placed an emphasis on compactness with this iteration of the nano--the latest model is practically all screen and crammed into a 1.48-by-1.61-by-0.35-inch enclosure. It's difficult to fit a camera into something that compact, so away the camera went.