Here's a puzzling (to me) footnote on the tech specs page:
"Up to 5 hours of battery life is based on H.264 1.5-Mbps video at 640-by-480 resolution combined with 128-Kbps audio. "
Why base it on 640x480 playback when the actual screen resolution is only 480x320? Are iTunes movies standardized at 640x480? Even if they were, I would think you'd want to shrink them down before transferring them to the iPod/iPhone to save storage space - if that's even possible.
Could this mean that they intend to produce a VGA iPhone?