The Screen to my 16gb Touch seems like most of the ones I've seen, pretty drab , with not the best Contrast ratio. I've been finding that if I encode in MP4 vs H264, it helps with a Bit more vibrancy in the colors and a bit more contrast in the blacks. H264 seems a bit more washed out on the touch, although it's a tad clearer. Try it out encode one program in both a H264 version and a straight MP4 version and Compare and tell me your results.