Yeah that's what I was thinking.
ShanePod - would you mind telling me what your Capacity is just for the Videos on your Touch?
I have synced 15 TV Shows and it takes up 8.36gb... That's A LOT of Space. So was just wondering what size is your videos?
Also what are you using to convert them (or are they official downloads?)
My Breakdown:
1061 Songs = 3.83gb
15 Videos = 8.36gb
65 Photos = 42mb
Capacity 14.8gb
Available = 2.6
The Capacity of just my video is 7.86G averaging out to 600MB for a 1:30h Movie at 127 bit rate. H.264 I find helps me save a lot of space.
I usually download the movies pre-converted to mp4 but I also download avi and convert it using VisualHub as I like the ease of use and quick converts.
Don't forget that you can use
http://code.google.com/p/telekinesis/ to watch movies converted to iPod Touch wirelessly around the house stored on your computer.
To watch them wirelessly on your Touch eliminates the need to put everything on the Touch. (As well as Music, Pictures, Documents and so on..)