Everone keeps on saying that it will be a year but I don't think it will be released until around the time all the 18 month iPhone contracts run out, which is when we are more likely to see the release of the new iPhone. If Apple are plugging the iPhone as "the best iPod ever" then we will see that improved before the iPod Touch. They will not release a new iPhone for a while as not to annoy loyal customers again, but they will have priority for an upgrade, maybe discounted?