Yes, you can! Because I just did a while back and it's in 1080p full screen and all that good stuff. I just took a video (like you normally would) then I connect to my computer and grab the raw .MOV movie file and upload directly to YouTube, I am certain there is a way to upload directly to YouTube from the iPod but I'm not sure.
Also, you have to at least let the video be up a day or two later, you won't get 1080p quality on YouTube right away. When I first uploaded my video it would only go as high as 720p but after a day I checked back I can now change my quality setting to 1080p for the video on YouTube.
