A Japanese site has released a series of photos about iPod NanoÂ?s dissection:

The same case with other iPods, very tight.
No air caps.

Divided into 3 parts. The connection between the internal unit
and the front panel has been cut off for comparision.

Internal comparision with iPod mini.

The battery was minimized for space saving.

Data I/O is the same with other firewire versions.
Audio Out and the data port is now on the same side.

Internal unitÂ?s surface.
You can see the data memory chip there.

Internal unit (back)

2MB cache memory chip on memory connector board.

Comparison with iPod Photo.