Today Apple launched the much anticipated, “fatter-style” iPod Nano with a 2-inch, 320×240 resolution video screen at 204 pixels per inch, more than any other current iPod device. The new design is surprisingly similar to the rumored pics that were floating around.

The new iPod Nano measures just 0.26″ thick and weighs 1.74 ounces with a battery that will give up to 24 continuous hours of audio playback and 5 hours of video. It comes in Flash drive capacities of 4GB ($149) or 8GB ($199) and in a choice of 5 different colors, but the 4GB model will only be available in silver.

The player supports protected AAC (from iTunes), MP3, Audible, Apple Lossless, WAV, and AIFF for audio, and H.264, MPEG-4 for video along with still images of PEG, BMP, GIF, TIFF, PSD (Mac only), and PNG formats.

The new Nano also features an enhanced menu with Cover Flow that lets you browse music by album artwork, a 65% brighter display and the super-thin frame is built with the front made from anodized aluminum and the back of polished stainless steel.

We have to say that this little media player looks very sharp sporting the same scroll wheel and curved frame as previous iPods and we just can’t wait to get our hands on one. Fortunately they’re supposed to be hitting shelves as soon as this weekend.

Video iPod Nano