The rumors have started about Apple releasing a “true” video iPod at the end of March or beginning of April. If the rumors are correct, they will go from a 2.5″ screen (on current iPod’s) to a 3.5″ screen and do away with the click-wheel, and instead use an on-screen touch-panel interface.

Think Secret can confirm recent rumblings that Apple is nearing completion of a completely revamped video iPod that will shed the ubiquitous mechanical click wheel for a touch screen and will sport a 3.5-inch diagonal display.

http://www.thinksecret.com/news/0602videoipod.html