Well -- I don't really know about the iPod Nano's capabilities - but as soon as you load iTunes software which comes with all iPod's, it scans your My Documents folder and imports all music and video files it can find (which could potentially be a trifle embarrassing - depending on where you surf and what you download). I sure as hell can't watch videos on my iPod Shuffle - or if I can I haven't quite yet worked out how - but I rather thought that you CAN watch videos on on the Nano (although 1Gb is not too much memory for a lot of video!)