I have the newest nano (square one) and it does not play video. it plays the audio of video but on video is displayed.

Are there any tricks to getting this to work, because others have said that they have gotten it to work.

Nope. None of the new ipods will play video on the D3, except for the ipod classics, and even then only with one certain older version of the firmware.

http://store.apple.com/ca/product/MB129 ... MTIxODk3Mw

unless you get this cable, run your Ipod as the AV1 source. You won't be able to control the ipod from the deck if you do it this way, but at least you'll get the video on the screen.