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High-definition video on your iPod available in five months — This will happen when San Carlos company ATO releases a new liquid crystal display sleeve that slips onto the iPod, the company said at the AlwaysOn conference this week at Stanford. We’ve mentioned the company before. This sleeve will work with video iPod and normal iPods. It’ll cost between $199 and $250, and will handle a variety of video formats.

File-sharing site Kazaa will become a legal — The music download service has also agreed to pay $100m in damages to the record industry.

Google to fess up on click-fraud — You’ve seen the reports by researchers saying that Google is taking “reasonable” measures to prevent Click fraud or the practice where publishers click on ads on their own site to generate revenue. Now Google says it will disclose to advertisers the number of clicks on ads that it deems are fraudulent.

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SayNow to offer new voice service for social networking — This is a Palo Alto company that will let music artists on MySpace broadcast voice messages from their cell phone to their fans’ phones, for free. It also lets their fans send replies that can be listened to via phone or computer. Numbers are kept private. SayNow is also a stand-alone offering, giving people a way send messages, called “shoutouts,” outside of MySpace’s platform, though all of this is still in testing mode. It wants to make money by integrating advertising into the shoutout messages. The eight-person team has raised a “significant seed round,” chief exec Nikhyl Singhal tells us, but he wouldn’t disclose more.

37 Signals offers voicenotes and calendar on its “to-do” Backpack service — Backpack is a service where you can collect to-do notes for yourself online. It is now offering a new feature where you can call in and leave voicenotes at any Web page of your Backpack account. Details here. It is also offering a calendar.

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Digg reveals Digg Labs; debate rages about Digg usershipDigg Labs is featuring two featurers, Digg Stack, which shows diggs occurring in real time on up to 100 stories at once. “Diggers” fall from above and stack up on popular stories. And then there’s Digg Swarm, which draws a circle for stories as they’re dugg. Diggers swarm around stories, and make them grow. Brightly colored stories have more diggs. A feature you’ll probably never check again, but there you have it.

Some are saying the top 100 Digg users control 56 percent of Digg’s homepage content. Although Digg’s Kevin rose disputes that.

Google Dance is August 8thbut ends at 11pm.

Intelleflex, another RFID company — of San Jose, has raised a $15.5 million in a second round of funding led by new investor Morgenthaler Ventures.

Is Zillow a Web 2.0 company? — Somebody asked us that in comments on our recent post about the online real estate company. We gave him a few answers, but this week Zillow has responded in force, announcing an open API