So, I haven't tried Sandy's technique, because it's a bit of work. No offense, Sandy. I'll explain why I haven't tried it, and that may help your own decision.
In a nutshell, I don't think it will work. Sandy initially said, "ORIGINALLY, what was causing this problem was the iPhone update 2.0.1" This is (I believe) incorrect. Those of us who started this thread had this problem immediately that 2.0 was released. The subject of the thread, however, is a little generic and I think other people with similar problems have since joined.
The second reason is that I'm a developer and computer scientist. For the problem that started with 2.0, Sandy's solution just doesn't make sense FROM A DEVELOPER'S PERSPECTIVE. Those of you who are developer's would be correct to point out that there are no absolutes in the field. Sandy's fix could be correct, and there's some really odd coding going on. However, I just don't see changing iTunes making a difference with whether a file plays on the iPod. This is largely because all my files play fine within iTunes. If they didn't, I'd jump at Sandy's suggestion. But given that they don't, it seems a distinctly fringe possibility to me that altering iTunes is going to change my iPod; The file is the same, and the software (on the iPod) playing it is the same. If I have a DVD that plays in my PSP, and plays in my car, and plays in my home entertainment system, but doesn't work in my xBox... sounds like the xbox is the problem. Or possibly a quirk in the DVD. But changing the firmware on my car stereo isn't going to help (unless it's a microsoft car?).
Finally, if you look at my previous posts, you will see that I CAN make the affected files play on the iPod by turning off H.264. This further supports the idea that the problem is with the iPod.
So, if you had the problem start directly with 2.0, and if your videos all play fine in iTunes but not on the iPod/Phone, then I doubt this fix will work. I could be wrong, but I'm unwilling to go to the work given my suspicions. If you cannot make your videos work any other way, or they don't play in iTunes, and it started in 2.0.1, then this may well work.
Hope this is of some help,
Markian
Message was edited by: Markian Hlynka