Will my 80GB iPod be affected??

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I am using MeGui and the PD-Ipod 5.5 profile to create x264 videos and then mux using nicmp4box!

Now, in the long run will my pod be affected if I continue to run videos that are of a greater bitrate than the ipod officially supports??

for eg: 320x240 max. 768kbps but nicmp4box hacks that limit, thus enabling higher bitrate videos to be accepted by itunes! So will this kind of crossing limits affect the normal functioning??

And even if any such problem occurs, will it prove to produce hardware issues or just restoring the pod would set it back to normalcy??

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it's unlikely they will reduce support, but you should be aware that more bitrate requires more battery to decode.

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Yep..battery for sure agreed! But I am ready to sacrifice a little of battery power over quality, however certainly not its life!