Ok, so this isn't news; apparently its common knowledge to some that you can instantiate a nested Java class by using a $ instead of a . in the name:
I'm posting this because I found it impossible to locate this information on the web. I even had an Adobe tech tell me he was logging a bug that CF couldn't handle nested classes, because even he didn't seem to know that you could do this. Its now in the CF8 LiveDocs, and its now on my website. Perhaps the next person in line will be able to find it easier.