MacRumors.com

ThinkSecret maintains that a true video iPod is in the works and claims to have further details on the upcoming device.

Contrary to their previous report on a Touch-screen Video iPod, ThinkSecret now reports that the upcoming Video iPod will sport a 4" screen with a 1/4" border and retain similar dimensions as previous iPods. Reportedly, the 4" design has been settled on over the previously mentioned 3.5" design.

The true Video iPod is expected to debut as early as March/April alongside a new movie download service from Apple. Despite recent efforts by Apple to offer feature-film downloads, ThinkSecret states that there are a number of obstacles remaining. Most notably is Steve Jobs desire to keep the pay-to-own model consistent with Movie downloads. The movie industry, however, is firmly settled on a subscription-based model.

Finally, the rumor site reveals that the Movie Download Survey speculated to come from Apple, was instead commissioned by Starz Entertainment Group and sent to current Vongo customers.