yes it must be hacked or "jailbroken" as most people refer to it as. If you have firmware 1.1.1, its quite easy to jailbreak. Just go to www.jailbreakme.com on your iPod safari and scroll down to the bottom of the page. At the bottom, you will see something like "install appsnapp". Click it and your safari will crash and bring you to the home screen. You will also see the download progress over the springboard. When it is done, you will have to unlock the iPod by sliding the arrow like normal and you will see the installer icon. You are now jailbroken! In installernyou can scroll through hundreds of cool apps including TTR and iPhone apps. Message me if you need help or have questions.
If you have firmware 1.1.2 contact bowlerguy10. He helped me jailbreak my 1.1.2 iPod and it only took about half an hour.