The iPod nano (fifth generation) 1.0.2 update, available via iTunes, is aimed at users of the iPod nano introduced by Apple in September. According to Apple's release notes, the software update fixes audiobook playback to allow Normal, Slower, and Faster settings to work for audio podcasts.
The update also resolves an issue where Genius Mixes were not working for anyone using the Nike + iPod Sport Kit add-on.
Other fixes in the 1.0.2 nano update include one that allows the accessibility setting for Mono Audio to work and another involving a bug where VoiceOver menu items were skipped when using the plus (+) and minus (-) volume buttons on the included headphones.
Additional troubleshooting information for the fifth-generation nano is available from Apple's Web site.