The UK Apple Store are selling refurbished 8GB Ipod Touch for £119.
Not sure if it is first or second generation but seems a good deal to me.
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Holds up to 1,750 songs
Up to 22 hours of music playback
Up to 5 hours of video playback
4.3 x 2.4 x 0.31 inches
If you buy via quidco you can also get 6% cashback making the deal even cheaper.