Because the original iPod Touch didn't come with an application installer, I used jailbreak software - some people seem to have trouble - I think it depends on the jailbreak software used, but I never had any problems with it. I believe that the new iPod Touch 2.1 software includes the Apple App Store though (there might be a small fee to upgrade?), and while some of the applications have a small download charge, there are plenty of free ones available too.
Originally Posted by Age of Aquariums
I'm also thinking about getting the iPhone. Let me know how it works!!! :)
I went and picked up my iPhone on Friday, and have been messing around with it to compare with the iPod Touch. I love the fact that it's a phone with iPod, WiFi, 3G, Edge, and can be used for checking the internet or email from anywhere that WiFi or a 3G signal can be found. It's slightly larger and deeper than the iPod Touch - but not significantly. The external volume contols on the side are a very useful feature, and overall I love the look of it. The external speaker is a useful function to have as well, especially if sharing a song or video clip with friends.
Using the WiFi connection, internet speed so far has been almost equal to my Broadband connection at home, and the 3G connection I've used so far isn't really that much slower :) This will obvioulsy vary with different networks and in different areas, but I'm very impressed with what I've seen so far.
It has a very good sound quality when used for making calls - the best I've experienced with any mobile phone, and text messaging/sending emails is a breeze using the querty touch keyboard.
The only thing I miss is not being able to install themes, but there's no way I'm going to jailbreak this little beaut. I'm hoping Apple will bring out a facility for changing themes.
Overall, I love it! :)