Not sure if this is normal or not, but I definitely haven't seen this before. I plugged in my iPod nano and it showed up in the source list but with the iTunes Store icon instead. I'll show a screenshot. Also the large picture of my iPod doesn't show up in the iPod Summary tab anymore.
I installed UNO yesterday but then uninstalled it today which is when I spotted the iTunes behavior.
I've restored my iPod just now but the icon still remains incorrect.
I've repaired permissions and restarted but unfortunately the problem still persists.
I plugged in an old iPod shuffle I had kicking around and the icon is OK which pretty much narrows the problem down to my nano. I'm going to try formatting the nano and will post back with results.
I've used UNO in the past and haven't seen any problems. I know a lot of people on this board use UNO and I don't want to cause any concern - for now it looks like the problem is the nano and not any software.
The store is actually hosted on plasticparadox's nano now, that's why it was so slow over the holiday.
An iTunes reinstall isn't too bad to do, if restoring the nano doesn't get anywhere. Pull the files with iTunes in their name out of Library/Receipts and go to town.