Released September 2008 -- The second generation (2G) iPod touch isn't exactly a major update from the original iPod touch, but it does offer a new pricing scheme, a slight redesign, more hardware controls and improved battery life.
Apple has changed the look of the iPod touch very little; there's a more curved back piece (still scratch-prone glossly chrome rather than aluminum or plastic). They've also added hardware volume controls, which is a nice bonus, though it does deviate from the one-button control scheme of the original touch. Another add-on is an onboard speaker, so you can listen to music, program sounds, etc., without earbuds.
According to Apple, the 2G iPod touch has 50% better battery life than its predecessor, up to 36 hours of audio and 6 hours of video on a full charge.
The new touch features the same 3.5" touchscreen display, great for watching movies, TV shows and online video. The 2G touch also includes the software update which allows you to download and/or buy software from the iTunes App Store.