Does update 1.2 update ipod video decoders?

Hi guys, tried searching for this but gae up after 4 pages of results.
Basically i would like to know whether update version 1.2 for the 5th gen video 'pod updates the video decoders so that we can now watch H264 or MPEG4 movies encoded at 640 x 480 rather that 320 x 240.
OR.. do i have to buy the new 30 or 80 Gig video ipod (which would b seriously cruel/mean thing for pple to do).
Thanks in anticipation.
G.

Basically i would like to know whether update version 1.2 for the 5th gen video 'pod updates the video decoders so that we can now watch H264 or MPEG4 movies encoded at 640 x 480 rather that 320 x 240.
It updates the iPod so that "low-complexity" H.264 encoded using the increased data rates can be sync'd to the ipod. (I.e., files encoded by current third-party converters using the improved H.264 specification will not sync.) Playback on the iPod is, of course, scaled to 320 x 240 for display on the iPod screen. They can even be chaptered, but while chapters work in iTunes I have not been able to get them to work for iPod video playback.

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