I've been following this thread and I'm experiencing the same problems as those with the blacks not displaying correctly and producing the negative effect. I went to return it today at my local Bestbuy, but since I ordered online through BestBuy.com and used the instore pickup feature they wouldn't let me return it. They said they agreed the blacks were bad, but didn't think it was defective. They told me that I would have to call the one eight hundred number and return it there, but when I went online to read there return policy it says you can make returns in store ??? I feel like I'm getting the run around. Unless Apple releases an software or firmwire update next week, I will just try taking it back to a different store and bringing a copy of the BestBuy.com return policy with me, I may end up having to pay a restocking fee and that bites because I just got mine Saturday. This has really left a sour taste in my mouth as I am a Mac fanboy and this is my fourth iPod and I have purchased every OS update since Puma, along with a Power Mac G5, iMac G3, iBook G4, and Power Book G3 all new. I'm really disappointed, but I hope Apple makes this right. It wouldn't even bother me if Apple cut $150 dollars of the iPod touch in a month, as long as the one I purchased was working correctly.