Hey Donna:
Don't know much about the iPod touch, to be honest. I'm happy to do a little research. At first blush, the iPod touch seems like an excellent replacement for a PDA. Looks to me to pretty much be an iPhone without the, er, phone.
Here's where I'm starting..
First, the obvious. Watch the videos.
Apples iTouch Page Here's a mac centric site where I hang out. You will find lots of useful information there. Be wary of asking questions, tho - the members can be a little snarky.
Macrumors web page Let's research together! I'll post back later.