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The iPod doesn't only do MP3s, AAC is the primary format, and iTunes can convert anything you throw at it. One of my favorite features of my iPod Touch (which I use for Internet browsing for hours a day,) is the 2x playback of audiobooks and podcasts. The Nano also appears to have this feature. It takes a bit of getting used to since it doubles the speed then phase shifts the audio back down an octave, but it sure is efficient.
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