New in the 1.1 software are the abilities to completely turn off the iPod (rather than just put it to sleep) and to control music or radio playback using the Sleep/Wake button.
Previously, holding down the Sleep/Wake button for several seconds would force the nano to go to sleep. Now, you can turn it off instead (as long as it’s not charging or connected to a powered accessory or cable, that is). Apple indicates that shutting the nano off will cause the following:
Music or other audio that’s playing on the device stops.
Paused radio clears.
If a slideshow is playing on the device, it stops.
If a voice memo is being recorded, it stops and saves.
The pedometer stops.
Nike + workout data stops and saves.
However, if you turn the nano back on within five minutes of when it was turned off, it will remember your music playlist and what was playing. When it’s off, you also won’t hear or be alerted to any alarm or reminder set on the iPod.
You can also now use the Sleep/Wake button to either skip to the next track or radio station, or pause or play the current track or live radio, all with a double-click. To set it up, Apple lists the following steps: