Earlier this year there was the iSee, a sleeve that slips over your iPod for video viewing. Now, the iSee producer, ATO has an upgrade that allows portable hi definition video on its LCD.
To be released around Christmas (duh) the HD player will cost from $200 to $250 and will handle MPEG 4, Divx, etc. It looks like a sleeve that you slip onto your iPod locking it into a USB 2 connection (will fit standard size iPods and Nanos). The iPod disappears and voila, a Hi Def video player. The neat thing is that the storage is partitioned with sections for iPod content and sections for the iSee.
This way you can keep video that doesn’t have the Apple copyright protection software, and get around the digital rights management.