Video iPod Chip?

Arstechnica posts an unverified rumor about the possible brains behind an upcoming Video iPod.

According to the site, "Sharp sales reps are bragging to potential customers that Apple will be using the Sharp LH7A400 SOC (system on a chip) in the initial version of the video iPod."

The chip specs are posted and provide enough processing power to decode MPEG4 as shown in demonstration hardware.