I would get a 64 gb as well. You may not need alot of capacity right now, but who knows in the next 3 years, right? If it's a gift, then why not, you might start ripping dvd's and using handbrake to upload it to the touch, in which case you'll use up all 64 gb like I did.
citizenal is right. I got an 8GB in summer 2009. I figured I only have like 500 songs and a TV show to put on it, so I'd save my money and not get a 16GB. That was a mistake. I didn't realize apps were so big, or that it isn't an 8GB at all. It has a 6GB drive, PLUS the OS and included apps. I now have about 7MB free on my iPod, and I will probably get an email with the next minute, filling up the last byte. My point is, you can always have unused space, but you can't fill the same space twice at once. When I upgrade to a 4th generation, I will be getting a 64GB. I think it's worth the extra hundred (and I'm 13, and make $400/year if I'm lucky). But it's even more worth it to you, because it's free!