You have to set the D3 to video in order for it to play video from the ipod. Anything else will just get audio.
You can however, setup video playlists. I have a movies, music videos, and tv shows playlist. When I hit video, I choose a playlist and it plays. I can then use the remote to skip videos within the same playlist.
I am either doing something wrong with my Ipod, or have a defective one.
I create the video playlists filled with music videos. The videos play fine on the Ipod, and on the D3. I select the playlist, and can see the listing of music videos.
When I select any of the videos, the video will begin to play, but will say "1 of 1" vs "1 of....XX" (with "XX" being the total number of playlist entries.
Even using the Ipod controls, I cant skip from one video to the next.
The Music Playlists do NOT function this way. The Music playlists function correctly, with no problem.