a 4 inch touch screen is the dream of every person who doesn't own a shiny ipod and the nightmare of every person who owns a scratched up ipod.
Saw it on macrumors.com as a thinksecret scoop. I never really put much credence behind thinksecret rumors so take it for what it's worth:
They also discuss a possible movie service from iTunes coinciding with it in the March/April timeframe.
Although I've been down on all the hype that got inflated around Apple's last announcement, this is in the timeframe of Apple's 30th anniversary and I've said all along that Steve's ego won't let it go unnoticed without a really special birthday present. So... fingers crossed.