Become a MacRumors Supporter for $50/year with no ads, ability to filter front page stories, and private forums.
Improvements that I have noticed:

- The Clicker now has options for Off, Speaker, Headphones and Both.

- When you scroll down to now playing on the main menu, when a song does not have album art, it now shows the song name, artist and album, rather than just the song name.

- Playlists are ordered in the order they are in iTunes, rather than just alphabetically.

- Music videos are now listed under their artists, rather than just all together.

Unfortunately, Cover flow is still listed by artist, rather than album artist. Hopefully they will fix that next time.
 
Improvements that I have noticed:

- The Clicker now has options for Off, Speaker, Headphones and Both.

- When you scroll down to now playing on the main menu, when a song does not have album art, it now shows the song name, artist and album, rather than just the song name.

that all i needed in this update
 
I registered here just to express my glee for the new firmware. Instead of listing things I noticed it has fixed, I'd just like to mention a few things I HOPE it fixed, and maybe get a few "yeah, me too!" replies...

Random lockups while connecting to a PC. It just locks up, frozen, dead, stuck at whatever screen it turned on at, requiring a Menu+Select reboot before the PC will recognize it. Annoyance factor: 8/10. :p

The darn thing doesn't save my "main menu" selections after a reboot (caused by #1). So in order to get quick access to the "Songs" menu, I need to re-enable it after a reboot. Annoyance factor: 5/10.

But hey, other than that, I <3 my little Nano. :D

Now, let's apply that update and see how it happies itself.
 
With the new update I now cant make playlists on the go :( when I hold down the centre button on a song it doesnt add it to an on the go playlist like it used to, it just does nothing.
 
Well, the first thing I've already noticed on the down-side is that it increased the delay needed to hold "play" to turn the iPod off - noticeably. It used to be a very comfortable ~1 second (who would ever hold it for >1 sec to push "play/pause" on purpose?), but now it takes about 3 seconds. Bad Apple, BAD!

Haven't run into a lockup yet, so I haven't had a chance to see if the menu settings or lockup bugs are fixed. But I have to say, the delay problem sucks. :(
 
With the new update I now cant make playlists on the go :( when I hold down the centre button on a song it doesnt add it to an on the go playlist like it used to, it just does nothing.

My Mac formatted nano still works for that. Can't make on the fly playlists from coverflow (but couldn't before).
 
Something else I have noticed which can only be described as a downgrade (albeit a very small one) is that the 'Extras' menu clocks no longer have a second hand.
 
Register on MacRumors! This sidebar will go away, and you'll see fewer ads.