First, I have no Itouch but I have Iphone 32gb.
Tax varies from state to state. If you want to save on tax, get it online (meaning not thru Apple online store) and have it delivered to a US address.
Based on the recent Applecon in SF, there is not much improvement on the Itouch other than it has now a 64gb version. Apple is now pushing the Touch as a formidable game device as more game developers are jumping in. One of them is a little company in Redwood, CA called ELECTRONIC ARTS
Now, regarding DVDs being converted to mp4. I wonder why others are saying that it's too complicated to make this happen? Never had any bit of problem converting movies and loading it to my device. I use HANDBRAKE and it does the job in less than an hour.
The latest Itunes iteration (ver.9) simplifies file management even more.






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