Apple has expanded the iPod shuffle range to now include 1GB and 2GB models.
Don't hold your breath for anything exciting now, because this is nothing more than a capacity boost. In addition to offering the 1GB iPod shuffle in a spectrum of colors (well, silver, blue, green, purple and red) for $49, you can now pick up a 2GB model for $69. Everything else about the shuffle (size, colors, controls) stay the same.
I've got a 1GB shuffle and it does exactly what it says on the tip - play music. Personally I find it too small, the controls too fiddly and the capacity too small (and an extra gig doesn't change my feelings there) but the shuffle is the cheapest way onto the iPod ownership ladder.