If you want to save a little bit more or want the other models, check this out:

CowBoom has the 8GB Pre-owned iPod Touch 4th Gen on sale for a low $99.99 after coupon code, free shipping. While supplies last. White and Black color are available. Stock and quality changes daily. This is a cheap way to test out the Apple iOS eco system.

Coupons:

Save $10 off your purchase of $100! Use Code CowBoom10 - New Customers Only, Excludes Deal of the Day, exp Soon

Save $20 off your purchase of $300! Use Code CowBoom20 - New Customers Only, Excludes Deal of the Day, exp Soon

Cowboom sells pre-owned products that are fully functional but may show signs of use or may be missing accessories like a cable or charger. Their description shows what is included. They grade them from 0 to 10.  Stick to items with grades 5 through 7. Cowboom's  return policy is valid within 30-days of delivery.

Apple Refurbished - These sell out fast, but get restocked

Apple Outlet on eBay has Apple Certified refurbished iPod Touch 4th Generation, Free Shipping. 1 year warranty. Tax in most states. It is worth buying here because they restore their products to like new condition, including a manual and a cable, all for a low price and include an Apple warranty. Stock changes during the day, so check back if an item is out of stock.

• iPod Touch Generation 4 32GB $179  (originally $249)
• iPod Touch Generation 4 64GB $229  (originally $329)

This is way more than an MP3 player; videos, gaming, apps, and more.  It has gained popularity as the portable game machine of choice over the Nintendo DS, Sony PSP, etc. $0.99 per game is a lot cheaper than $49.99.

Also receive 2% back as eBay bucks for future purchases on eBay.