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So is the series 5 smaller than the series 4 ? I saw a series 4 at walmart and it was pretty small. Not sure if it was pocketable or not.

Basically, yes. Gen 4 was using two-platter 1.8" drives (as well as 2.5" drive models). Gen 5 only uses 1.8" drives, and only the 160GB model is a two-platter drive. So if you see the 604 in the stores, the Gen 5 players are all slimmer than that, except the 160GB model, which is only two-three millimeters thicker.
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Matt