This is a hard game to pick, mainly because Nebraska are so similar to Michigan this year; both 8-2 (4-2), both with limited passing games but fairly good running games, both with mobile quarterbacks and decent defense etc etc.
I watched most of their game vs Penn St, and I think Michigan's biggest problem will be Rex Burkhead. He's got over 1000 yards rushing on the year, and his general toughness makes him hard to bring down. Penn St has a good defense and he gained 121 yards on them with a TD, so this is worrying.
Michigan will probably (hopefully?) dare Nebraska to pass, and if they can get the same kind of QB pressure as they did against Illinois, Taylor Martinez should be forced into some mistakes. The concern though is if Michigan loses contain and allows him to scramble, he's got the speed to make the defense pay.
On offense, Michigan will no doubt start the game by just running Fitzgerald Tousiannt, seeing how good the interior DL of Nebraska is without Jared Crick. Personally, I'd like to see us do short and easy throws on first down to keep Nebraska off balance, stuff like a tunnel screen to Gallon. Michigan needs to get Denard Robinson into the game early, whether it be by rushing or passing, we need him to be confident, because when he is, he's very dangerous.
Michigan's offense has been good at home, but they haven't really faced a good defense since Notre Dame, so this will be a good test before the big game next week. Ultimately I think Michigan will pull out the victory, limiting their mistakes while our defense forces some turnovers.
Prediction: Michigan 31; Nebraska 21