well if your basically trying to watch video on your IPOD i would see if your IPOD supports 'Rockbox' (www.rockbox.org , shows what models it supports on it's main page) and if it does it has it's own video support which you can use programs like WinFF (http://winff.org/html/ , which is free) to convert just about any video format so it will play on it.
p.s. in my case i have a Sandisk Sansa e250 and the video is better (i.e. higher frame rate) in Rockbox than it is in the official firmware.... plus not to mention Rockbox plays more audio formats than stock firmware does and you can play games etc etc on it. it is just flat out better than stock firmware. if your Rockbox runs on your IPOD i would use it over the stock firmware.
Apple: 1st through 5.5th generation iPod, iPod Mini and 1st generation iPod Nano
(not the Shuffle, 2nd/3rd/4th gen Nano, Classic or Touch)
that should sum up if your IPOD is supported.