I noticed that version 520 mentions that the playback of iPod photos on a TV is no longer scrambled. I deleted and resyncd all of my photos under 520 and they still appear scrambled. They do however look less scrambled than before if that is a valid definition. I play the videos to a TV screen via the iPod interface connector and docking station and not the AV adapter available via the headphone jack. Not sure if that makes a difference.
FYI, i have the Gen VI iPod video if that makes a diffrence.