Hello, I’m an iPod Touch first generation. I was just upgraded to OS 3.0 and now I refuse to work with any cheap AV-Out Composite cable you can find on eBay, Amazon or any other supplier.

Apple has been using lock-out chips to control third-party video accessory development and effectively preventing older, less expensive accessories from competing against Apple products…
You literally must buy new chip-inclusive items if you want to see your iPod Touch or iPhone video on a separate display. The alternative is to downgrade to OS 2, which for some reason did not have this limitation.