Originally Posted by
Dubai Stu
With respect to the Touch, last I heard it didn't have a Microphone which seems to be a deal breaker for VOIP. I saw some hacks involving active disassembly of the Touch and soldering in an iPhone replacement mike into the Touch.
To update this post from last fall, I just installed Skype on my iPod Touch. The Apple Store now sells an integrated headphone/microphone for the iPod Touch for $29 and the combo of this and Skype works perfectly for outgoing calls.
http://store.apple.com/us/product/MB770