I just upgraded my iPod to 1.2 as I heard that they now support 1.5Mbps H.264 at 640x480. I was tickled pink about that as I'd like to show some videos at friend's places and that's nearly DVD quality. However, the iPod wont take H.264 1.5Mbps 640x480 videos created with Handbrake, saying it can't play them. What the hell? I even turned the bitrate down to 1400 and turned the resolution down a tad in case the video had somehow gone out of bounds, but no good. It wont take it. I thought the new updater brought the old iPod up to the video specs of the new one! I'm not a noob at video encoding at all. I've been doing it for years and have used Handbrake successfully for quite some time now.