This is the latter;
And this is how you do so;
1. Click on the Google Video icon on the video box, you will be confronted with a button that says "Go to Google Video". Click on it and wait.
2. When on the site, the video will play on a larger scale. On the left there will be a toolbar, which has a droplist asking on how you would like to download the video.
3. Click on Video iPod/Sony PSP and click "Download".
4. If the video doesn't download automatically, right click the text labeled "here" and click "Save Target As".
5. Come up with a name for the video, and a place where to save it and click save.
6. Once downlaoded, go onto iTunes.
7. Click on "File" and then "Add File to Library". Then highlight the video file.
8. Once done, click "Update iPod" or "Sync to iPod" on the "File" droplist.
9. Enjoy my video bollocks.