Tell me about it. I had little problems with my 3rd Gen iPod Touch but upgraded to a 4th Gen iPod Touch for the Retina display which sucks with the limited amount of RAM with iOS 5.No, and since it has the same amount of ram as the 4th gen iPod touch, and yet does not have the Retina display to soak up that ram, it is actually one of the fastest iPods out there.
I always wondered why Apple did this. Can only guess to keep the price lowere. Glad the 4 gen didn't do this.One thing to note is that the third-gen iPod touch only came out in 32 and 64-gb sizes; the 8 GB model sold at the time was just the second generation. Also, you most likely won't be able to run iOS 6 on it. If that's not an issue, go ahead.