Music Video Playback

I think all you need to do is create a video playlist from within iTunes. You can create such a playlist in iTunes either manually or by creating a smart playlist using the "Video Kind" attribute.

I've already done that on my nano and when I go into the "Video Playlists" menu item on the nano I see everything that was synced from iTunes and when I select the playlist they play back-to-back without stopping.

I just create a playlist from within iTunes that has nothing but music videos within it (in my case, all from the iTunes Store) and then manually drag it to the iPod nano image that is shown within iTunes. I'm using the manual management method for my nano, I don't think that would make any difference.

In any case, it works because when I go into "Videos > Video Playlists" on the nano and select my playlist and then select the first video in the list they play back-to-back. I can also skip tracks while they are playing and it continues to the next video and then the next (i.e. it stays in back-to-back playback).

And it appears to work with both smart playlists and standard playlist that I create within iTunes. I suspect the playlist must contain nothing but music videos (no audio-only tracks) but I haven't actually tried mixing track types to see what happens under those conditions (maybe that would work also).