YES it is much more than an iPod, its a PDA, its a GPS, its a Games Console, its a Netbook, its a toolkit and many other things.
its reliable easy to use, slim (fits in pocket with no bulge) and long lasting with great screen.
bad points they are not the cheapest players around (but if you take into account the extra bits it works out cheaper than buying all the bits together). and it is limited at the minute to 8, (16 on old models), 32 or 64 GB.
buy the biggest you can afford as once bought you cannot add extra memory and they are so useful you will nearly fill whatever version you buy.. there are so many useful APPS and games out there you will want them all and also you will fill it with movies too..
AVOID the classic its OLD technology using a hard disk and is VERY prone to damage when dropped, its cheap for a big storage but is less flexible than the others. if you don't need the APPS and internet then get a NANO. the only thing a Classic has (while they are still made) is disk mode so you can use it like a hard drive but the touch does this by APPS and the nano can't do this at all
The iPod touch 2nd generation can be distinguished from original iPod touch models by its contoured design and oval shaped antennae cover in the back upper left corner. It also has a volume rocker key on it's side. This can be updated to OS 3.1 by itunes
iPod touch third generation gain 3GS specs - roughly 2x faster, with more advanced 3D graphics using OpenGL 2.0 - it also has extra features like Voice Control. You can have the OS 3.1 pre-installed when you buy it.
to see the difference between 2nd gen. and 3rd gen.. go into your settings, general and about. if your model code starts with MA its First Gen, MB its second Gen and if its MC you have the 3rd gen.
there is NO true 3rd gen. spec 8GB its a starter model and still the 2 gen. spec, but updated to the 3rd gen model code without change from the 2nd gen. only the 32 and 64 GB are in the 3 gen., the 8 and 16GB (if you can get it) are still 2 gen. models.