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Apple has reportedly run into trouble with its upcoming video iPod, where it can't seem to get the display and touchscreen interface to work properly, according to Think Secret. The Apple rumors website reported that Apple had hoped to deliver the new video iPod in April, but sources said Apple engineers decided to redesign a balky touchscreen on the iPod, which allegedly includes a wide screen display spanning across the width of the device and uses a virtual trackwheel.

Think Secret also asserted that Apple may have foreseen technical problems with the new video iPod in February, and that might be the reason why it hasn't aggressively pursued rights deals with Hollywood studios for full-length movie downloads. We think Apple also might be waiting to see what happens with other movie download sites before it jumps in to the movie downloading fray.

As Apple retools new video iPod, release rolls back [Think Secret]