Went into my local poundland and saw these awesome cases for a quid. They had two different designs.
A pound is the best price out there for a faux leather case. These are £20 on amazon.comhttp://www.caselogic.com/ipod_touch_case/product_detail/index.cfm?modelid=124427
LInk to the case +rreviews
For the ipod touch case
Flip open case provides a custom fit for all ipod touches (fits 1st, 2nd, and 3rd generations)
Plastic screen protector and soft suede-like interior keeps your iPod scratch free
Quick & easy access to all ports and controls
'This is a really good case. I've got the Ipod touch 2nd gen, you can't really tell what's inside when its closed which is good for security. It can slip down a bit but because the ipod slides in from the side there is no risk of losing it through the bottom'
Warranty: 2 Years