I burnt 400 dollars buying a 60GB iPod video and I returned it... the video feature isn't that great.
Converting your own videos is a huge hassle, even with the freeware apps out. It takes a loooong time and the quality isn't so top-notch anyway.
The battery life sucks on it, too, you can only watch one movie (assuming it's about 2 hours) without it dying a few minutes later. I'd rather watch it on my iBook in full screen.
Taking care of it as a whole is a pain in the neck too. You HAVE TO buy a case for it. The back metal casing will inevitably get scratched up, even in a case, the screen will get scratched and then you have to buy a scratch repair kit- whats the point?
Photos on your iPod - bad idea. It takes a lifetime for them to render on the tiny iPod screen and they come out terrible on a television screen anyway.
The iPod was made for music. Not videos. Not photos. I personally think thats what it should stay as.
This is why I have an iPod shuffle
Just my 2¢.