Oh, oops, I read the 1G and I'm like damnnn....lol, anyways yeah, the videos are 5G.
They've gotta be coming out with a new iPod soon. Usually they release a new generation (of the regular iPod line, not Nano/Shuffle) like once a year...
The 1G-3G iPods are so weird to use though, since the buttons aren't inside the click wheel.