Apple has released a significant update for the new iPod nano 4th generation. The 57.8MB update brings the firmware to version 1.0.3.

Apple says the nano update fixes several issues including instability when using the Nike + iPod Sport Kit and a problem that caused Cover Flow art to be distorted after playing a slideshow with TV out.

A problem that caused photos to be distorted when waking the nano from sleep has also been addressed.

In addition, support has been added for Apple's new earphones and in-ear headphones with remote and mic and a setting has been added to turn off Cover Flow when rotating the nano.

The company has also issued an iPod classic for the 120GB model that adds support for Apple's new earphones and in-ear headphones with remote and mic, as well as fixing a bug with saving Genius playlists.

Both updates are available now through iTunes.