Not sure if this has been posted here, but it was from the apple forums, there currently down at the moment. Someone from Digg copied and pasted it, so here you go. I hope it helps.
"I'm an engineer with experience in the LCD industry and after seeing enough photos of the Ipod Touch I feel that I can make a pretty accurate assessment of the "black level" situation. It appears to me that it's a problem with the anti-reflective coating. The good news is this is most likely a temporary situation due to quality control issues.
(Added explanation: The AR coating is essentially a clear layer that prevents light from reflecting off of that surface. What's happening here is the upper glass layer is reflecting light from the LCD screen back down onto the said screen. Without an AR coating you get exactly what you see - shimmering blacks. The problem isn't noticeable with vibrant colors on screen. Rotating the screen will change the way this light is reflected to your eyes and may minimize the problem, but since the LCD was engineered to give best color output when looking straight on, you're left with a losing battle.)
Apple surely rushed the factory on getting these out (Steve was likely already upset enough that they weren't ready for the announcement along with the other units) and the factory, under undoubtedly ridiculous amounts of pressure, started to skimp on this very expensive - and very important - part of the process. Additionally, AR coating issues would also explain why you see "slight changes" from one unit to the next.
It's the last thing anyone wants to hear, but the best thing to do is wait 2 weeks or even a month for the complaints to filter through Apple HQ into the factory where changes will certainly be made.
Good luck all - and to those who got good units congrats!"
Posted by: drvelocity
"I'm an engineer with experience in the LCD industry and after seeing enough photos of the Ipod Touch I feel that I can make a pretty accurate assessment of the "black level" situation. It appears to me that it's a problem with the anti-reflective coating. The good news is this is most likely a temporary situation due to quality control issues.
(Added explanation: The AR coating is essentially a clear layer that prevents light from reflecting off of that surface. What's happening here is the upper glass layer is reflecting light from the LCD screen back down onto the said screen. Without an AR coating you get exactly what you see - shimmering blacks. The problem isn't noticeable with vibrant colors on screen. Rotating the screen will change the way this light is reflected to your eyes and may minimize the problem, but since the LCD was engineered to give best color output when looking straight on, you're left with a losing battle.)
Apple surely rushed the factory on getting these out (Steve was likely already upset enough that they weren't ready for the announcement along with the other units) and the factory, under undoubtedly ridiculous amounts of pressure, started to skimp on this very expensive - and very important - part of the process. Additionally, AR coating issues would also explain why you see "slight changes" from one unit to the next.
It's the last thing anyone wants to hear, but the best thing to do is wait 2 weeks or even a month for the complaints to filter through Apple HQ into the factory where changes will certainly be made.
Good luck all - and to those who got good units congrats!"
Posted by: drvelocity