I have a 2nd gen itouch. It is a 32 GB one. Its a little more than half filled, but I'm a huge music person so I can foresee it filling up soon enough.
I upgraded last christmas from an old, old, old ipod photo. It was different getting used to the touch, but I like it. The only thing I don't like about it is that it just doesn't seem quite as sturdy as my old ipod. That darn thing still works. The itouch freezes sometimes and isn't always as reactive as it should be. Just minor glitches, but overall I like it.