 Some iPods can play video. Your iPod has video capability if it displays Videos as one of the options in the Main menu. It's important to note that besides getting video from the iTunes Store, you can download video from the web. Once downloaded, drag and drop the file from your desktop to an iTunes playlist. It's important to note that iTunes can play a variety of video formats, however, iPods can play video in only these file formats: H.264 (.mp4) and MPEG-4 (.mp4). If a video plays in iTunes but not on an iPod, select the video in iTunes and choose Convert Selection for iPod from the Advanced menu.
You can connect iPod to a television or projector that has composite video (yellow, red, and white inputs). Apple sells the Apple iPod AV Cable or the Belkin Retractable TV/iPod Cable for $20. Getting Video Out of Your iPod For Cheap is a blog post that tells you how to use a cheaper cable.
Sources for downloadable video content:
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