The nano, is good cause it's small and will display hers pictures.
Other then that, the one she has is equal or better.
If she's used to having a lot of musci on her 40 gig, and having all that music with her all the time she may not enjoy the restricted storage size of the nano.
I'd only get her the nano if it's right for her lifestyle. If she has a 40 gig, but only 5 gigs of music (like many people), if she goes to the gym or carries her ipod around with her alot, then get the nano.
Also, this was posted in another thread recently, but there's really good deals on refurbished nanos at the apple website. If you don't mind it coming in a plain cardboard box(instead of the coloured one), you could save alot of money that way.
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