I don't know if this problem occurs in earlier version, but I found this out in this beta anyway.

I ripped my concert DVD "Katherine in the Park" to iPod and I have chosen the DTS soundtrack. The output file has sound distortion when the voice or music reaches high pitch / frequency. No such problem found when I ripped and chose the AC3 soundtrack.

Both soundtrack has no such problem when I play the DVD in my hifi system. The distortion only happens in the converted H.264+AAC ipod file.

Please check it out.