Hi shajenth...
Go to this webpage below and download a user manual and it will tell you everything you need to know about your ipod including what form of video file format to use.
To answer your question:To be able to play the videos on your iPod the video needs to be in a format that an iPod has the capability of playing.
You will have to convert the video into MPEG-4 or H.264 format with a softwear program (FREE) like the program at this webpage: http://formatoz.com/
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Ipod Nano user manual...http://manuals.info.apple.com/en_US/iPod_nano_4th_gen_UserGuide.pdf
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