This deal has ended.
Apple.com still has the iPod Touch from $299. Think iPhone but minus AT&T and the phone capabilities. It has the same touchscreen interface, 3.5" widescreen display and wi-fi web browsing the iPhone does, and has added direct wi-fi downloads from iTunes. Plus, it has the YouTube button, a calendar, and a photo application. It is only 8mm thin. There is an 8GB model for $299, a 16GB model for $399 and a 32GB model for $499.