Since my original post Temperamental Video I have used my 16gb (Week 37) Touch as much as possible.

I have watched many movies and tv programs created using:

PQ DVD to iPod video suite
Sony Vegas Platinum 8
PQ DVD to iPhone video suite

To date, I havent watched a single file through from start to finish without it crashing. As if thats not bad enough trying to get back to the exact place where it crashed is almost impossible with the fiddly scroll bar. Its not nearly sensitive enough.

Every one of the files works fine on my 80gb Video iPod, and through iTunes but the Touch refuses to behave correctly.

I have therefore decided to send it back and wait until Apple have ironed out the bugs.

Furthermore, In my experience, the screen fix (1.1.1) does improve the situation but you have to tilt the iPod away from you 3-4 degrees for it to take full effect which is bizarre.

Im going to finish by saying that overall the touch is fantastic, web browsing is superb and the overall experience is amazing. I wanted one; I got one; and I still want one! Im just not prepared to end up being stuck with a duff unit after my 30 days are up.

If anyone knows of a more robust application for creating iPod Touch compatible .mp4 files please let me know!