Who knows how much this is worth, but there's a lot of chatter flying around today about some text strings in the beta release of iPhone OS 2.1 that make reference to an "iPod2,1." Seeing as the current iPod touch is designated "iPod1,1," that's a pretty strong hint that a new model is coming.

What's more, it's going to be almost exactly the same as the current iPod touch, with maybe the addition of GPS -- it's not like Apple is going to position this thing above the iPhone.

Source- http://www.engadget.com/2008/07/29/iphone-2-1-beta-firmware-hints-at-new-ipod-touch/