Apple Insider reveals that iPtouch 2G is NOT YET READY FOR RECORDING because it lacks enabling software (or really, firmware). ********************* While it lacks the iPhone's integrated mic next to the dock connector, the new touch now supports audio input via the headphone jack using the same four conductor headphone port as the iPhone. However, the software for audio recording apparently isn't finished yet. Apple lists the second generation touch as being compatible with the two new sets of mic-enabled headphones due next month, but unlike the 4G nano or 120GB classic, the touch lacks the ability to record audio presently, even with the iPhone's mic/headphones, because there is no software support for it on the touch yet. Once Apple ships the headphones, the new touch will require a software update. Most likely, the headphones aren't ready because of the software still being unfinished rather than the other way around. Note that earlier iPods, including the first iPod touch and the 2007 3G nano and classic, will never work with mic-enabled headphones because they lack the fourth conductor mic support on their headphone jacks. Apple hasn't said anything about not releasing audio recording software for the iPhone at the same time, and it would be monstrously stupid if if Apple arbitrarily chose not to offer that. http://www.appleinsider.com/articles/08/09/22/review_apples_second_generation_ipod_touch.html ********************** If you're like me and you want to get the iPt 2G for music recording (esp. 32 GB!) I would wait a couple of months to see if that's really going to be possible, either with Apple software or third party apps.