Wow. Don’t expect top-notch video quality from the iPod classic or iPod nano while using Apple’s recently released Component AV Cable. Compared to the the iPhone and iPod touch, the classic and nano eat it. Whereas the iPhone and touch look fairly similar to iTunes-puchased video as played back on a computer monitor, the classic and nano distort the picture like nobody’s business. Take a look at head of the mom from The Incredibles. In iTunes and iPhone/touch playback, her head looks in proportion to the rest of the scene. In the classic version it looks like a parade float. (Color differences can be chalked up to the way screen shots work.)
The other screenies inside.
Conclusion? Video output from the iPod classic and nano could be better. Stick to the iPhone and iPod touch if you’re looking to output video as best as you can.