So the iPod Video definitely had USB 2.0, and the cable therefore should and will be fine.
Also, USB 1.1 is about 40 times slower than USB 2.0 in theory - USB 2.0 is really a lot slower than its stated speed (Firewire 400 is a lot faster than USB 2.0 - 400 vs. 480 Mbps rated speed respectively) because of the way it works. It doesn't matter though - you can't get around USB 2.0 in any way right now.