Its freaking BULLCRAP! i'm planning on returning my touch (if i can, HOPEFULLY i CAN!) and buying a 16 gb iphone then since i dont have att im just gonna jailbreak and use it as ipod unless i eventually get att. im PISSED OFF though! i payed $400 for my touch now i could get the same storage PLUS a phone for $100 cheaper?!?!?!!?!?