TV out - I want to watch movies on a TV

"The manual implies I cannot do so. "

How does the manual do this?

From the manual:

"TV Out
Use these settings to control how iPod touch plays videos on your TV.
Turn widescreen on or off: Choose Video and turn Widescreen on or off.
Set TV signal to NTSC or PAL: Choose Video > TV Signal and select NTSC or PAL.
NTSC and PAL are TV broadcast standards. iPod touch displays NTSC 480p/PAL 576p
when attached to a TV using a Component AV Cable, or NTSC 480i/PAL 576i using a
Composite AV Cable. Your TV might use NTSC or PAL, depending on where you bought
it. If you’re not sure which to use, check the documentation that came with your TV.
For more information about using iPod touch to play videos on your TV, see “Watching
Videos on a TV” on page 64.
"

AND:

"Watching Videos on a TV
You can watch iPod videos on your TV, using any of the following:
Apple Component AV Cable

Â
Apple Composite AV Cable

Â
Apple Digital AV Adapter and an HDMI cable (iPod touch 4th generation)

Â
Apple VGA Adapter and a VGA cable

Â
The Digital AV Adapter supports high-definition video up to 720p with audio.
You can also stream iPod videos wirelessly to your TV using AirPlay and Apple TV.
Note: Apple cables, adapters, and docks are available for purchase separately. Go to
www.apple.com/ipodstore (may not be available in all countries or regions) or check
with your local Apple retailer.
"
http://manuals.info.apple.com/enUS/iPod_touch_iOS4_UserGuide.pdf

Did you make sure that you followed the directions in the manual?

Do you have an ipod touch compatible cable?

i use a different cable but with same yellow red white outs and it only brings audio. apple switched the cables order around for my one and it only brings audio.

search google for "normal av for ipod touch to tv" to show you what i mean.

the widscreen and ntsc/pal stuff is in video settings so that might help.

hope i helped.