Problems with Apple iPod software 1.1?

Version 1.1 of the 5G iPod software was released during Steve Jobs's keynote last Tuesday. Among other "improvements" such as bug fixes, the update gives the video iPod and the Nano compatibility with the new iPod Radio Remote. But according to many users on forums such as iLounge and digg.com, the new software has created at least one more significant bug. Here are some symptoms:

Some videos play for 20 to 30 seconds, then freeze, then continue on without sound

More likely to happen on 60GB iPods

More likely to occur with larger 200MB-plus files

Doesn't seem to affect video downloaded from iTunes Music Store

Many users who have updated have reported no problems whatsoever

A soft reset (Menu + Select) will temporarily fix the problem

Some users have reported "less lag" between playback of files

iSquint.org is plain coming out and saying, "60GB 5G iPod owners...don't upgrade!"

Those affected should revert back to iPod software 1 (a file comes on the factory CD), but it seems Apple users will lose all their data. Windows users can use a utility such as iPod Wizard.

It seems as though only video that has been converted using third-party software is affected. We've read reports that videos converted using QuickTime Pro work fine.

I've sent an e-mail to Apple inquiring about the situation and will report on the results. Affected iPod owners, please discuss your own experience with us.