The upgrade broke it for me. Mind you, I only use it for getting podcasts because I am too lazy to manage my subscriptions in a seperate program.
I'm getting major stuttering when playing and I use the computer, like the buffer is too low, and videos are now playing with a diagonal zigzag across it like mediaplayer does if its not using overlays. Apples support forums are full of audio issues but I haven't come across anyone with overlay issues. Thankfully VLC plays ipod formatted video sweet as so I can still watch them without the artifacts.