I just dragged it from Finder into my iPod through iTunes. I manually manage my iPod versus having iTunes do it.
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I can't even muster up the energy to email Apple. I've already complained so much about this product (the update screen that refused to go away and eventually locked me out of my iPod, constant restarts) and they don't seem to do much help. Last time I buy an Apple product on release day.![]()
If it isn't going away then you may have to restore, then it will sync freshly from your library.
And just for future reference, remember that AVI files can't be played on any iPod
The "Tech Specs" part of Apple's iPod touch web page lists the video formats that are compatible.