I'm curious about the Album Shuffle feature as well.
I was looking through the
User Guide for the new Nano and on page 28 it says:
*Shuffling Songs*
You can play songs,
albums, or playlists in random order, and set iPod nano to shuffle songs when you give it a quick shake.
To set iPod nano to shuffle and play all your songs:
Tap Songs on the iPod nano Home screen, and then tap Shuffle at the top of the Songs list.
This seems to imply that you can shuffle albums. Is there an "Albums" option on the Home screen? Can you go in there and then tap Shuffle?