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According to Wired, Apple has confirmed that the movie rentals will not play on fifth generation iPods sold before September, 2007. This has upset a number of users and Apple has not indicated that a firmware update coming. One problem mentioned is the “analog hole” in fifth generation iPods that could enable saving the rental to a DVR or camcorder. If true, the hole would be in the iPod’s hardware and thus not patchable, unless there is off switch.
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This update addresses compatibility with Mac OS X. Same as the iWork updates.