Do not buy now. There will be a new model out next week.
The iPod Touch is brilliant. I cannot praise it enough. The coverflow view for selecting tracks is superb. With the app store growing everyday (there are now about 70,000 apps) your ipod becomes a lot more than a music player.
The screen picture quality is excellent for watching films and TV programmes.
If you have wifi, you can send emails, and view the internet. The Safari browser is easily the best mobile browser for using the internet. This is where the touch, enlarging and zooming in and out comes into its own.
I have bought a microphone (�30) with mind which means I can use it as a Skype phone and avoid roaming charges when I ring from abroad.