From Macworld:
The iPod video
Without further ado, Jobs introduced Apple's new and improved video-capable iPod, with a screen that's 60 percent brighter. Battery life has been increased from 2 hours while playing video to 3.5 hours, Jobs says.
Also new is a new earphone design that took Apple 18 months to develop, said Jobs. Superficially, they look similar to the odl design -- they're still white.
The new iPod provides gapless playback, according to Jobs, which works with MP3, AAC, Apple Lossless and uncompressed music files. New software features have been added such as instant searching that uses the wheel to input letters and does a live search of iPod content.