MacRumors.com

According to AppleInsider, Apple is prepared to launch a video-capable version of the iPod in the coming weeks, possibly as soon as the scheduled October 12th media event.

The new iPod is expected to be a similar form factor as the present 60 GB iPod, although several millimeters thinner. It is expected to have a smaller click-wheel as found on the iPod nano, making way for a larger high-resolution color display than the current full-size iPod offering.

A major iTunes update is expected with the release as well, containing a significant number of downloadable music videos and other short movie content.