Psyclops starts as a case for your iPod nano 3G or 4G. But each case includes a registration code you’ll use to register with the site and build your Psyclops character online. You’ll then be able to construct your own 30 second songs using a Garageband-style set up, and then use your character to create a dance video to accompany your song. The end results are rudimentary, but still kind of slick and quite fun.

It’s safe to assume at this point that we’ll be seeing the 4G iPod nano at the September Apple event next week. And, with new iPods comes the inevitable flood of new iPod cases, leaving owners of the previous model behind. 3G iPod nano owners need not despair, however, as there’ll certainly be no shortage of cases available to them for quite some time.

After the break, we’ll take a look at two armband-style nano cases: Gadget Wrap’s nano Case Value Pack and the iSkin DuoBand.