This is the new 3rd gen, not second gen. Basically identical internals as iPhone 3Gs, minus the Phone and GPS. Certainly one of the lower prices I've seen so far.
If the direct link doesn't work, just goto Dixons's site, then search 'iTouch 32GB', then you can find it.
3% Quidco deducts about 6 quid off the price too. Not to mention free delivery online.