I know, it's already a portable video player--I mean one with a bigger screen. Buy.com has the Memorex iFlip on sale for $59.99 shipped, a pretty significant savings over the $199.99 list price.
Similar in design to a portable DVD player, the clamshell-style iFlip features a 7-inch widescreen LCD, stereo speakers, dual headphone jacks, and an iPod dock/charger that promises up to five hours of video playback from its rechargeable battery. It's designed for 5G iPods; I'm not sure if it'll work with 3G nanos. (Class? Anyone?)
I suspect that videos will look a little grainy and washed-out on the iFlip's 480x234-pixel screen, but it's probably better than squinting at your iPod's tiny LCD. Plus, it saves you having to hold the iPod at a comfortable viewing angle for hours at a time. I wouldn't pay $200 for one of these, but $60? I'm giving it serious thought.