The following was posted on the Google Blog by Bindu Reddy, Google Video Product Manager:

When your friends and well-intentioned acquaintances tell you that you’ve made a mistake, it’s good to listen. So we’d like to say thank you to everyone who wrote to let us know that we had made a mistake in the case of Google Video’s Download to Own/Rent Refund Policy vs. Common Sense.

To recap: we decided to end the Google Video download to own/rent (DTO/DTR) program, and are now refocusing our Google Video engineering efforts. The week before last, we wrote to Google Video DTO/DTR program customers to let them know that videos they’d already bought would no longer be playable.

We planned to give these users a full refund or more. And because we weren’t sure if we had all the correct addresses, latest credit card information, and other billing challenges, we thought offering the refund in the form of Google Checkout credits would entail fewer steps and offer a better user experience. We should have anticipated that some users would see a Checkout credit as nothing more than an extra step of a different (and annoyingly self-serving) kind. Our bad. ##Here’s how we’re hoping to fix things.##http://googleblog.blogspot.com/2007/08/update-on-google-video-feedback.html