I just picked up a week 38 touch with Macy Gray on the box and the screen unfortunately does have the negative black issue. I checked it using the Jay-Z Black Album picture as well as The Matrix which I converted with Handbrake. I had to tilt the Touch away from me to correct the issue since looking at it dead on gave me the negative black problem. Not sure if it's now safe to say that if you have a week 38 iPod Touch, you have a properly operatiing screen.