There haven't been many solid rumors, but what there has been, and what I think is reasonable, has been compiled here. Well first, let's get to the obvious, we KNOW there will be a next gen iPod Touch soon. iPod updates are always in September and the iTouch has kept the same look for basically 3 years. And iPod 4,1 most likely means 4g Touch. What will be added? Screen: If iPhone is getting FFS and a Resolution Update, do you think Touch will get it? The screen might also be thinner, to support battery room. Camera: A heated debate. I think we all (insane people not included) have to agree that a camera is needed. Even though we all (most likely, I know some of you don't) have a cellphone with a camera, we need a camera on the touch. There are hundreds, maybe even thousands of apps in the app store which utilizes the camera (bar code scanners, little camera apps, etc.) I REALLY hope that the camera will come in the 4g Touch. As for front-facing camera, no way. A front-facing camera is one of the things that the iPhone needs in order to be "better" than the touch. (I am NOT going on my shpeal about why a camera is needed. I will easily mow you down, if you are an opposer) Shape/Device look:I think that the new shape of the iPhone would be, as i said above, something that the iPhone needs in order to be "better". But I also think that Apple would not let the touch have the same look/design for 3 years on a row. It may get a refresh like the iPhone, or be something totally unexpected. Memory and RAM: In order to better support iPhone OS 4.0, the touch will need more memory and RAM, most likely dropping the 8gb, and possibly expanding to 96+. The next-gen iPhone is rumored to have 512 MB of RAM, making that a possible update for the 4gen. Battery Size: We all (hopefully) know the battery is atleast 16% larger on the 4g iPhone. That may be applied to 4g Touch, due to it advertised as a gaming device (and we all know what gaming apps do to our batteries). External Buttons: There have not been any rumors about this. There might be a button to lock the screen orientation in place, but, there haven't been any solid rumors about this, so we do not know I will probably update this when I think of more things to add and/or are requested to.