Edit: Looks like the video iPod has been confirmed. They also announced iTunes 6, music videos and tv episodes for sale in the music store and a media center add-on for the iMac. Details are still filtering in, but let's see how it compares to my expectations.

Apple rumor site Think Secret first reported that today's media event would not be to announce the highly anticipated video iPod from Apple. There have been hints that Apple will release an iPod-like device capable of playing back videos, not the least of which has been that iTunes has added support for playing videos. But now Think Secret is saying that it may be a video iPod that is announced today at 10am PDT after all. Many people have said that Apple wouldn't release a new iPod when the Nano is selling so well. But I think they'll be different enough products that they won't be in competition. I thought I might take part in the speculation and lay out what I would like to see in this product (whether it's announced today or later on).

1. An easy way to put my DVDs on the device. iTunes already lets me make a copy of a cd and store it on my computer or copy it to a portable device. It would be disappointing if the vPod didn't do this just as easily with DVDs. I know the movie studios would fight this, though. This functionality could come in the form of a new version of iTunes or a new app altogether.
Edit: There's still no word on whether iTunes 6 will be able to do these things.

2. A/V-out connections. This one should be no problem since it is already included in the iPod Photo. If I have video on the device I won't always want to watch it on the built-in screen. It should be easy to hook it up to a TV.
Edit: Check.

3. Big screen, small form factor. There's a delicate balance somewhere between being too bulky and having a screen that's too small to enjoy video on. If anyone can strike that balance, it's the designers at Apple.
Edit: I haven't seen a confirmed picture yet, but the screen is 2.5", 320x240, and it's thinner than the old iPod.

4. Some kind of way to interface with a DVR. I'm dreaming here, but it would be nice to dump the latest episode of the Daily Show from my Tivo onto the portable device to watch on a car ride or something. I doubt this will happen with Tivo, but maybe someone will make a MythTV plugin that can do this.
Edit: Probably not. But buying tv shows is an interesting alternative. Not that I'm going to pay $1.99 to watch something on a tiny screen that I can watch on a bigger screen for free.

5. Decent price. The high-end 60 GB iPod is currently $399. That's already a lot. They're not adding much more than some software changes and a bigger screen. $449 would be nice, $499 would be bearable, but anything else would be pushing it.
Edit: 30GB will be $299, 60GB will be $399. Better than I expected.

6. 80 GB hard drive. It's already well-known that Apple has access to tiny drives of this capacity. This should be a no-brainer. Video takes up a lot more space than audio.
Edit: This will have to come in a later update. 60 GB is still pretty good.

That's what I would like to see. If the new product matches this description, then I'll take it as a sign from on high that I should buy one. I guess we'll find out later today.

Edit: Here's a picture of one alongside the Nano. It's not much bigger than a Nano.