I watched this thinking how fake it was, and how it could have been knocked up with less than a dozen nodes in Shake, and just a coupla hours in after FX. I've never used a 5G, so the real explanation escaped me and I thought the sync problems (between scrollwheel and cover flow) were just down to rushing the footage he later comp'd on to the screen, when trying to match it up to the thumb movement. But yeah, the fact that the menu bar isn't visible when cover flow is on (suggesting full-screen video), and that he avoids showing it when he's supposedly back in the menu show up how this was really done. But I don't get whether the whole thing is a video, being played on the ipod with the cover flow edited in with captured footage from an ipod (if so why would the hold key have been locked during the original footage, and so why is he hiding the menu bar?) or is it that he turns hold off at the end of the cover flow video and goes back to the menu (but then why does he hide the menu bar from then on, and why doesn't he scroll thru the album a little, rather than just keeping it simple by pressing the centre button on the first tune (which suggests wanting to get the movement to look synched in less takes)?
As I say I dunno 5Gs that well, so maybe this is obvious to others. I should also reiterate for those few foolish optimists out there that even if the 4200 rpm spindle and limited graphics capabilities of the chips in 5G ipods could make this possible, you can bet apple would certainly not give it away as a firmware update, cos that would just be plain stupid.