Taken from wikipedia
The 2nd generation iPod Touch, featuring external volume controls, a built-in speaker, a contoured back, built-in
Nike+,
Bluetooth support, and the ability to connect a microphone, was unveiled on September 9, 2008, at the "Let's Rock" keynote presentation.
The 3rd generation iPod Touch with the new
iPhone OS 3.1 was announced and subsequently released on September 9, 2009.
[9] It is available with 32 or 64
GB of
flash memory. Apple also continued offering the 2nd generation 8 GB version.
[10] The new 3rd generation iPod Touch
[11] includes faster hardware (the same microprocessors, graphics engine, and RAM as the
iPhone 3GS), a slightly lower battery life,
voice control, light sensor, and bundled earphones with a remote and
microphone.
I have a 2nd gen 16gb ipod touch and i also had a 1st generation to, apart from the volume buttons and external speaker i didnt notice any differnce
