Technical specifications (iPod 30g)
Video:
Video formats supported: H.264 video up to 768 Kbps, 320 x 240, 30 frames per sec., Baseline Profile up to Level 1.3 with AAC-LC up to 160 Kbps, 48 KHz, stereo audio in .m4v, .mp4 and .mov file formats; MPEG-4 video up to 2.5 Mbps, 480 x 480, 30 frames per sec., Simple Profile with AAC-LC up to 160 Kbps, 48 KHz, stereo audio in .m4v, .mp4 and .mov file formats

I DON'T SEE .AVI >< MAKES PALMER'S SAD!