Apple Event October 12th

Tonight sees one of Apple's press-only launch events for...a video iPod? A video-enabled Airport Express? Both?? They normally drop a hint into the invitation - this time it's that cinema-like curtain in the background suggesting movies...
If it were a video iPod, the only content you could watch on it would have to be sold via the iTunes Music Store (as it is still technically illegal to rip your own DVDs). The same iTunes "Video" Store would probably offer music videos and short clips of other types - perhaps episodes of TV shows? But I doubt whether full-length films would be available. You'd be able to watch the clips you buy on your Mac/PC, the 'video' iPod and perhaps a video-enabled Airport Express. This is the item that would interest me the most - as I believe video belongs on a decent screen in a comfy environment (e.g. living room TV). Would also hope they add a infrared/bluetooth remote to go with it and a snazzy Apple-like user interface.
Engadget has an interesting take on the speculation that has taken place in the last week or so. They cite Think Secret's latest salvo on the video iPod "will-they-won't-they" debate.