Otter Products has announced a new version of its rugged OtterBox for the iPod nano. The “waterproof, dustproof, dirtproof, sandproof, and drop-proof” case features an interactive membrane that provides protected click wheel access, a hard screen cover, rubber lining, and a secure-close latch. The case works with any standard set of headphones, and when combined with waterproof headphones, allows you to use your iPod while swimming. The $40 case also includes a removable neck lanyard and belt clip. Optional armbands are available for $14.95.