Yeah me too! I've got a 1st gen. iPod touch which won't run iOS 4. I mistakenly updated to 2.2 with iTunes and now I've got hundreds of dollars worth of video I can't watch.
I realise that it says iOS 4 needed in the small print but there should have been a proper warning from macProVideo about this. I don't think I'm the only one and I also don't want to buy a new iPod touch right now!
Anyone out there with N.E.D.i 2.1 they could set up a download for or something? I've got a long haul flight at the weekend and was hoping to watch some tutorials!