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The iPod touch 2nd gen cannot use Shazam or Skype without a pair of headphones with an integrated mic, but once that bridge is crossed it'll work just fine. And the price seems correct enough, if you flash a student ID at an Apple Retail Store location you might get a discount of some %age.
 
To summarize:
There is no built-in microphone on the iPod Touch 2nd generation. However, it is capable of using an external microphone, something that the 1st Generation iPod Touch could not do.
 
To summarize:
There is no built-in microphone on the iPod Touch 2nd generation. However, it is capable of using an external microphone, something that the 1st Generation iPod Touch could not do.

What he said. I have a 2nd gen Touch, and I use the Apple remote headphones (not the $70 in-ears; the $30 buds with the remote/mic) and Shazam and Skype work great on it.
 
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