Wired: Sony Prototyping Personal Video Player
Cinematique writes "Wired is running an article about Apple beating Sony in the personal music player fight. The author suggest that Sony should skip its planned answer to the iPod and focus instead on a portable video player. But there's a catch: the legality of the content such video players would use."
There's a rumor that Apple might introduce a device next week which would allow the iPod to be hooked up to a TV for video playback. A lot of people have speculated that the iPod was never supposed to be just about music ("pod" suggests something more general), so this wouldn't be too much of a surprise. A built-in color screen would be the next step, I guess.
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If you want a portable video player, just grab a recent Pocket PC and install PocketMVP
http://blogs.lns.kicks-ass.net/moonjihad/
I haven't seen anyone mention the Archos AV320 Mediabox.
It has a 3.8" screen, plays MPEG4, MP3's, and records from any video source (encodes into MPEG4), including NTSC and PAL video.