I think for 4:3 content ripped at 320:240 I agree. But if you rip it mp4 instead, you can exceed the 320:240 limitation. I'm currently ripping a 704:327 mp4 file to see how it looks on the iPod and on TV. MP4 files are limited by 230400 pixels in any ratio. The 704:327 maintains the same aspect ratio for the movie Batman Begins. Supposely, if you rip it at this resolution, even though the ipod will scale it down to fit it's screen, it will display it at this resolution on the TV (with scaling where appropriate).
Glor