...I have that cable with my 60Gb iPod photo and it won't work on my iPod Touch...made the mistake of brining it with me on a trip and got stuck with out my iPT...
Those cables work fine with the iPod Touch. Note that a FIREWIRE cable won't work any more, but the USB cable with release buttons will work fine. I use them all the time. (I only mention this because the iPod Photo worked with both the FireWire and USB cables.)
Make sure that your case will allow the plug to be fully seated in the iPod Touch. Some cases (like some of the iPhone 4 bumpers) only work with the newer "slim" cables. (the "slim" cable plug is narrower in height than the older cables.)
You should get the 'gleep' sound when you plug it in, and the lightning bolt will appear on the battery indicator. If this doesn't happen, there is something wrong with the cable.