I just bought a nano about a week ago, and after quite a bit of shopping bought it from the manufacturer.  Should you buy from apple, another online retailer, or ebay is your choice, but I saw some things while shopping around that you should be aware of.

IF YOU READ NO FURTHER, BEFORE BUYING ON EBAY, LOOK AT THE APPLE SITE. Understand the current prices and products. You'll be using it for itunes anyway. Then come back to ebay and have fun shopping around!

A BRIEF HISTORY OF NANOS and how that affects your purchase. Apple has put out 2 "generations" of nanos.

 The first generation (these are black or white, and have a glossy surface, and cardboard packaging) had some notorious problems:  scratching/durability issues. No universal dock plug on the bottom. Significantly less battery life. First generation comes in 1,2,4GB  (and occasional black 8GB)models.

The second generation JUST came out and already in a week, prices have dropped on ebay. These come in 2,4,8 GB models. These have a tough aluminum exterior, some pretty colors (except 8, that's black).... longer battery life, up to 24 hours,  and the universal dock which allows you to mix and match with many other ipod accessories.

LIST PRICES have dropped too. Even the 8GB at market will only set you back $250, the 4GB $200 and 2GB $150. Nice, huh?   Oh, and the completely revamped shuffle is a mere $79.  And the mini- well it appears to be history, although most ebay sellers won't tell you that.

WHEN TO BE WARY ON EBAY. There are sellers out there selling 1st generation 4gb nanos for $179 etc etc. This problem is most prevalent on the 4gb.... what was once the "best" is now middle of the line, and yet the "bargain" they're peddling is priced $20 below a superior product, from the manufacturere with a known warranty. Perhaps less than $20 difference considering you can get free shipping and no tax at many online retailers.

UNLESS YOU GET AN INCREDIBLE DEAL on a first gen nano, and I doubt you will, other suckers will bid it up, STICK WITH THAT 2ND GENERATION.

As for me, I bought the 8GB nano from apple, and a few accessories from ebay, and don't regret a thing. (although I think there are some great deals to be had these days on the nano too- I just couldn't wait!)

If you found this review helpful, throw me a vote, I'd appreciate it!