After updating to iTunes 7 and iPod 1.2, Ipod screen gets patchwork screen

I updated to iTunes 7 and also updated my 60 gig video ipod to version 1.2 last night and things seemed to go fine but my ipod screen garbles intermittantly - almost looks like madras cloth - you can't read anything - there are very fine lines both verticle and horizontal directions -
Sometimes (5x since last night) the ipod will lock up and i have to reset it. Reading the other posts, I tried turning off syc on podcasts but it is still doing it.
I have no hacks of any kind.

UPDATE - OK, I took the ipod into the apple store here - they tried to update it and get it fixed - ultimate resolution - get this...not a software issue at all - the hard drive on my 5G 60gig was on the verge of failing. Thankfully I was still within my first 6 months of purchase and the replacement was at no cost.
So, APPLE, sorry for casting stones about the update. I was wrong...
As far as diagnosing the hardware issue - you can reset the ipod and then listen to the hard drive - he said repeated clicking sounds and then a sound almost like crumpling paper (the best I can do) may be indicative - I think that's what he said (at least that's what I heard and asked him...)
anyway, could be a hardware issue for you too.
good luck.

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