Macrumors said:
Several sites are popularizing this Flickr photo claiming to be a photo of the upcoming full-screen Video iPod.
The photo resembles the leaked 5G iPod photos, but may have simply been inspired by the same photos.
The most convincing evidence that this is a fake is that the part number "M8719Z/A" is the same part number as Mac OS X 10.2 Server.
Very much a fake. This is how they did it. They took a piece of glass, placed it on a slightly smaller piece of something, connected a Firewire/USB combo cable with that piece of tape, and placed it all on a white surface so that when the picture looked through the glass, it would see white on the other side (iPod white). The LCD might have been real, but it is probably from something the guy tore apart.
As for the B vs. 8 debate... It's totally an 8.