iTunes has an update for the new iPod Classic and the new Nanos, and while the update doesn't have a description at all, MacRumors sez:
And the much awaited video out fix, among a few other interface tweaks
Apparently there's a new option that will "Ask" users to output video when a compatible cable is connected. And some people say that the calendar and contacts will synch better as well, although I have the same reservations I have whenever I hear about unlisted feature updates -- if Apple did make it better, why didn't they want to tell us? Wouldn't they want us to know the iPod works better than ever?
At any rate, if you think it works better, then more power to you-- enjoy your updated iPod. As always, the update can be grabbed by connecting up your Classic or Nano to iTunes and hitting "Check for Updates."