Apple have announced a new iPod nano, and as predicted it includes a video camera.  The new iPod nano fifth-generation has a larger, 2.2-inch display and a new polished anodyzed aluminum casing, and as well as the camera the Cupertino company have managed to squeeze in an FM radio, pedometer with Nike support, speaker and microphone.

The radio in the nano supports music tagging, so that listeners can tag a track they like and then purchase it from iTunes later.  Video recorded on the PMP can be watched on-device or sync’d with a Mac or PC, before being uploaded to YouTube.

The Apple iPod nano is available from today, priced at $149 for the 8GB model and $179 for the 16GB model.  Colors available include red, orange, yellow, green, light blue, dark blue, graphite, silver and pink.

Check out the hands-on gallery here

[Via Slashgear]