iTunes TV Episodes - option to convert to iPod Touch is grayed out

[raeganhill]

Issue: iTunes TV Episodes do not have the option to "Create iPod or iPhone Version"

I purchased an iTunes TV Episode.
Sync features are enabled for it to sync to iPod Touch but when I sync iTunes tells me that these file types are not supported on my iPod Touch so I go to the TV Shows section of my iTunes, highlight the episode, then click Advanced from the menu but the option to "Create iPod or iPhone Version" is grayed out and not an option.

Any suggestions? Print Screen attached.

Raegan :-)
www.linkedin.com/in/raeganhill