Update on Cover Flow:
-Even though my compilation albums are listed by artists, hence multiple entries in cover flow, when I select the album, the iPod shows the whole track list of the album (regardless of the artist listed in Cover Flow), in the correct order. So I guess it worked half-right on compilation albums. All Apple needs to do is to group compilation albums under “Various Artists.”
Software update 1.0.1:
-So far the only fix I see is the battery charging icon. Before, when I connect the nano to my Macbook, there is no indication whether the battery is charging or not (no flashing thunder). Now there is the thunder icon. Note that after the update, it reset the menu items, so I have to re-configure the menu.