MacRumors.com

ThinkSecret has published a rumor of a new 4th generation iPod featuring a previously rumored Toshiba 60 GB hard drive. In addition to the rumored size increase the new iPod is said to have a 2-inch color liquid crystal display, iPhoto synchronization, audio/video-out capabilities, and will sell for $499. Form factor is not expected to change, although the new iPod will be slightly thicker and heavier than the present 20 and 40 GB models.

The 2-inch color screen is identical in size to other iPods, but will sport a higher resolution for photo viewing. However, the new device's real shining feature will be its video-out port, which will enable users to tote their photo galleries with them, ready to be plugged into any television for big-screen viewing.

The 60GB iPod will feature only rudimentary built-in software for viewing photos, with no editing tools, sources say. Photo albums will be navigated in a similar fashion to music playlists, and a slideshow feature will provide transitions with user-specified background music, similar to iPhoto. Synchronizing features similar to iTunes will also be added to iPhoto.