Apple added a new pedometer feature into a "Fitness" submenu that lives in the Nano's "Extras" directory along with games, voice memos, alarms, notes, and so on. It's cute and it works a little like a poor man's Nike+iPod kit. In fact, iTunes will even prompt you after it sees you've used the pedometer, to see if you'd like to track your progress on the Nike+ Web site.
The Nano records 640x480-pixel resolution standard definition video at 30 frames per second. Files are recorded as iTunes-friendly MP4 videos with h.264 formatted video and AAC audio. Video quality looks, well, decent.