Apple Inc. has announced via a cryptic flyer that there will announcement.Apple Inc. is hosting an event on Wednesday September 5 that many think will be the stage for a new version of the company’s iconic iPod Portable Music Player line.

The Internet is all atwitter with speculation, started by the circulation of vague Apple event invitations bearing an image of a silhouetted iPod-wearing figure dancing above the words “The beat goes on.”

Apple’s iPod has become the most popular MP3 audio player in the world since its debut in 2001. Its most recent addition to the iPod line is the matchbook-size Shuffle introduced a year ago.

The full-size iPod has not been updated since 2005, when a video playing “fifth-generation” was introduced in October. Obsessives who watch Apple Inc.’s ever move believe the company is poised to reveal iPhone-inspired improvements (to the iPod) such as enhanced wireless capabilities and a large-screen iPod for better video viewing.

The timing of Apple’s event announcement could be to shore up its image in the wake of fall-outs with Hollywood and music studios that want more money for content sold on the iTunes online music store–a service that is paired exclusively for iPod and iPhone users.