This deal has ended.
Update: the 2nd-Gen Touch is now out-of-stock. A refurb of the current-gen model is available for $169. Apple is now offering refurbished models of the 8GB Second-Generation iPod Touch for just $149 $169, almost $30 less than a new model. Plus it comes with Apple's one-year warranty. That's currently the best deal we've seen on the this model of the Touch, which is basically an iPhone with the web browsing and video capabilities, but without the calling function or phone bill. This is not the newest generation, though the difference between the two is nearly imperceptible. Shipping is free with sales tax charged in most states.