Wait for OS 4.0 (should be a summer with the newest iPhone, if they follow new OS releasing schedule they've made for themselves) If not, hope OS 4.0 can be jailbroken (jailbreaking has a bad rap, its actually quite awesome and you can do a lot with it) unless you have a 1st or 2nd generation iPod touch, which can be jailbroken on all versions. 3rd generation on 3.1.3, youre screwed, like me. Unless you have a 3rd generation 8 gig, which can be loaded with the 2nd gen software (its easy and I can show you how, but I wont dig it up unless you need it), and then jailbroken (hopefully without further need of text in parentheses).
I'm on 3rd Generation 32 gig, and screwed until they can jailbreak 3.1.3, or Apple releases it.