MacOSX.com seems to be patting themselves on the back for this one:

Our sources have confirmed the next generation iPod will have a color screen. The new iPod will not be much different in form and function from the current models, but the primary difference is the color screen. Other details about the iPod are scetchy on our end but the fact it will be color is not up for debate. We are sorry we don’t have more information to provide or details concerning the screen itself, but when it does come out or other rumors abound of it, just remember you heard it here first.

I’ll definitely remember I heard it there first, and will keep asking myself why it matters? Yes it’s cool the iPod is going to have a color screen, but really, what digital device with a b/w screen doesn’t finally get a color one? Cellphones, PDAs, everything that was once b/w is now color so it would only make sense that a future version of the iPod would also be colorized. Not only that, but since the iPod was released people have been speculating what might be next - video, audio input, and color screens have all been talked about. Now, if they new for sure that next version of the iPod came with a feature to cook my dinner for me, or go grocery shopping for me, that would be news I’d be excited about.

Also, until Apple makes an official announcement it’s pretty bold to say a rumor is confirmed and not up for debate.