“Apple’s full-size iPod is being primed for an update that could arrive as early as the first-half of August, sources report. The revision will feature neither a touch-screen nor will run a scaled down version of Mac OS X like the iPhone, however—those updates are not scheduled until 2008,” Think Secret reports.

“Apple engineers are said to have shaved the height of the iPod while maintaining the same 320×240 resolution display and click-wheel as the current 5.5G iPod. The saved space will shrink about an inch off the device,” Think Secret reports.

“Sources also report the new black iPod will be less glossy than previous models and feature a finish that better matches the black MacBook,” Think Secret reports.

More details in the full article here.