I just found out that that iPod Touch can play videos straight from vlogs using Blip.tv. But not if you're viewing those blogs through Google Reader. Well, not without some help.
Here's my explanation of how I made it work, and a test to see if it works for me. It took a few rounds of this, but I managed to get it when I actually uploaded a .mv4 file to Blip. Works like a champ. None of my other videos will, but all will from now on. Unless Apple figures it out and actually puts Flash support on the iPod Touch. WTF?