MPEG-4 Video on ipod shows blue and white checkerboard lines

[grace]

when displayed on ipod. These lines are vertical and seem to go away when the screen is lighter colored, or if the video is playing in fast forward.

Other videos in my ipod seem to play without this problem, but only the videos I have created from Video Studio 10 using Share, Create Video File, Ipod MPEG-4 ipod export function have this error. I have also tried all other MPEG4 formats in Video Studio, but get the same error. ...the sample NTSC video shows this error, just at the end, when converted to ipod format. This only occurs when the videos are played back on my ipod, not in itunes player or VS10.

Any help is greatly appreciated.

[grace]

I have shipped my ipod to apple and they claim it is not a problem on their end.