It is true that nanotechnology is about creating things smaller than the eye can see, they don't necessarily have to be machines in the traditional sense.
Nanotechnology, rather, has become a scientific buzz-word used to describe phenomena on the nanoscale, 0.000000001 meters. What is this small? Well, atoms are generally 1/10th of a nanometer... So if you put a bunch of atoms together, you've got a nanometer.
Some people think of nanotechnology just as making teeny machines (with gears and all), but the field is so much broader than that. Researcher of biological proteins often call their work nanotechnology. Really anything that involves surface interactions or self-assembly is nanotechnology.
Anyway, check out quantum dots. According to Wikipedia, they've made it into Playstations.