1. What do the Peel Cases do exactly? Explain in details, please. 2. Is there one compatible with the iPod Touch 3G with 5.0.1 firmware? If so, where can I get it?
1) It allows you to make calls and text as if it was an iPhone. It also allows you to use data when you don't have wifi, vibration is an option, and some even charge your iPod while they're on. 2) The Peel520 has good reviews, but the case for the 3rd gen iPod only supports iOS 4.3.2 right now.
1. Essentially, it turns your iPod into a fully featured iPhone. P.S. If you want advice in this topic, [MENTION=169931]tinyman392[/MENTION] and [MENTION=438393]Indestructible[/MENTION] know a lot about them.
Peel case is a case designed for a specific model of iPod touch that will allow phone capabilities with that given iPod. This includes texting, calling, and web. For the 5.0.1 firmware, Raisoo does currently manufacture a case for it (The T3 case found here: http://www.raisoopeel.net/buy/raisoo-new-peel-t3-2g3g-ipods-black/). There are others as well (search for these though).
SIM cards are generally free and are provided by your GSM phone provider. If you are on a GSM network (i.e. AT&T, T-Mobile,...), chances are your current phone has a SIM card that can be removed and placed inside the peel. However, if you are on a CDMA network (Verizon, Sprint, Metro PCS...), you won't be able to get a SIM card for your device.
GSM network does not carelessly mean pre-paid. Anyhow, after a quick google search of MTS cellular, your phone company only offers CDMA network connection. That means, your provider will not be usable on the peel.