Apple iPod touch 8GB - 4th Generation is amazing. Well, not quite as amazing as the iPhone 4, which has IPS so that the colours look the same at any angle. The iPod Touch's screen will distort in colour even at a relatively low angle but it never presents as much of an issue really. A high resolution might not sound like it is needed, but it can eliminate the need to zoom in on webpages as the text remains clear and readable even when it is tiny- provided your eyesight is good enough! Apps not optimised for the new display can look blocky and pixelated but it is never so bad as to make them unusable.

no because you won't be able to get any songs or apps on it, because 2Gb is used for information stored by your iPod.

i recommend 8G