After all the excitement for the excellent o2 1st gen iPod touch, I thought it might be worth pointing out that Apple have refurbished 2nd gen touch at pretty good prices....
8GB = £129, 16GB = £185 & 32GB = £245
Quidco is available at 3% for extra savings too!
I think that the (2nd gen) 32GB represents a good deal for double the memory capacity of the (1st gen) o2 deal for less than twice the price!! (237.65, if Quidco comes through...)