Hi guys. I'm the person who posted the high resolution images being linked to here (the ones hosted at Comcast by audi-fan).
The situation with the display on the device is disappointing (especially considering that it's a $400 device). I get the impression that there are multiple versions of the display being used, and unfortunately many of us are getting one that is nowhere near as good as what is on the iPhone.
When I bought the iPod Touch I specifically asked the Store Manager about exchanges in the event it had a bad screen, since I had read some early reports of it on Gizmodo, etc. He told me that people always over react when a new Apple product launches and he doubted it was a real issue. Look at the pictures I took (linked earlier in this thread) and tell me if it's over-reacting to be disappointed in a screen that won't even let you watch a movie without having a washed out picture?
I plan on talking to the Store Manager again this evening and demonstrating the problem to him. Maybe he can reserve a replacement for me, etc. I would hate to have to return what appears to be a defective product and pay a restocking fee or have to send it off to Apple for a refurb replacement when I just got the device a few hours ago today.
A buddy has posted the story about this over at Slashdot as a new article submission in the 'firehose'. I would advise anyone interested in getting Apple's attention on this to vote up the story.
http://slashdot.org/firehose.pl?op=view&id=288871