As expected by recent rumors, Apple releases iPod Photo and iPod U2 Special Edition.

Apple iPod Photo:
- color screen
- photo capabilities
- battery life improved to 15 hours
- 40Gb @ $499
- 60Gb @ $599
More here

iPod U2 Special Edition:
- black with red click wheel
- autographs of U2 members
- 20Gb
- $349
More here

Apple has also released a minor update to iTunes (v4.7) that allows photo syncronizing with the iPod.