By Taking advantage of the 'Scroll through photos with the scroll wheel' (while taking up the whole nano screen) feature, you can assume amazing control of the video.
P.s You'll need Adobe ImageReady (or similar application).
Step 1: Find a movie and import it.
Smaller movies are better. Remember, the iPod nano's screen is pretty small, so you don't need much.
Dragging the file onto the ImageReady icon will create a window that asks if you want the whole movie or just part.
I'm using a very small MOV of a plane landing, so I said GIVE ME THE WHOLE THING.