Yep, Apple has done it. Those who update their iTunes can now purchase games for their 5th generation iPod videos. I purchased Texas Hold Em and Pac Man the graphics are suprisingly good and very easy to play. Pac Man comes with I beleive over 200 levels and Hold Em has 8 different tournaments that you advance through as you play. It's pretty hard though in the poker one, the first tournament is easy to beat and free to play, the second one you join by paying $500 of the $1000 you won from the first tournament, and if you loose twice then you gotta do the first one again. The first one has only one round and the second has 2, Im sure it gets bigger and harder as you go along. It's as if you are actually playing Hold Em at a real table, everything is so thought out and like I said, easy to play. Here's the info for Pac Man. A faithful reproduction of the world famous arcade classic, down to the "coffee break" animations (the animated intermissions). All 256 maze levels from the original included. That's a lot of playing time... Also, it automatically saves your progress no matter where you are. You can be in the middle of a hand or in the middle of copping down some balls. I found the 2 games very fun, there are 7 more (9 total) I bought the two above. There are all only $4.99 each and can only be played on the iPod 5th Gens. All you have to do is run by apple.com and download the new and improved iTunes 7 which will have the new 1.2 Software for you iPod Video on there and will alow you to play the games. I have 5.14 left on my iTunes Store account and if someone wants I can buy them a game, songs, or videos and send as a "gift" through iTunes for some credits.
Sorry just spent the last $5 on another game. Maybe when I buy another game. Also, the games have pretty good graphics and I don't think all the iPods would be able to handle them. But if you download linux for your iPod you can add games to it and other files without breaking the warranty.
My friend modded my video ipod somehow, I forgot what he did but I have Doom (the pc one) and half life (gameboy one) on mine.