For background, I'm going to take advantage of Apple's Free iPod deal for students and upgrade my 5 year old iPod/iBook setup. I'm primarily interested in using the Touch as a cheapo wifi phone. Specifically regarding Skype, are there any compelling reasons to shell out the extra $100 or so for the 3rd Gen Touch? I'd love to hear anyone's experienced opinion as to whether Skype is practically/usefully operable (I will be on a wifi campus most of the next two years, so connectivity is not an issue) on the 2nd gen if I purchase mic'd earphones, and whether iOS4 adds any benefits to the mix. I've never owned a Touch before, so when other threads mention issues with sleep and some options to deal with it, I can't really envision workarounds. Ultimately, I guess it would be useful to know which of the two models is most set-up for use with Skype (apart from one coming with a mic). Thanks!