iPod Touch can't play video

After downloading my first movie today and syncing with iPod Touch, the movie is not visible in Videos. Movie plays fine in iTunes and I don't get any error on sync. I can see it copying to ipod and completes OK. When I click on iPod's Videos button it displays the 'list' of videos (rather than "there are no videos" message), but the list is empty. Tried searching for the movie name - it is not found. I also tried syncing the sample_iPod.m4v video - same result. I tried a podcast video - same result.

I have latest version of iTunes, also updated to latest version of iPod software and Restored iPod settings.

If I sync the videos with my (older) ipod nano, they display and play on it no problem so it must be down to something specific to the iPod Touch?

Help?