As long as you can charge the iPod in your car, I'd go for it.
A 1st Gen (or really 2nd, 3rd, or 4th) are getting to the point they are not that expensive, or valuable. Someone might be less likely to steal it out of your car, and if they do, you are not out as much.
The only thing I really dislike about the 1st gen touch is there are not physical volume buttons.
Yeah that's what I was thinking, so I don't have to take it in and out of the house every time. Will leaving it connected to the stereo via an iPod hookup that piggy backs onto the XM connection drain my car battery or damage the stereo/car in any way?
Hmmm. Not sure. Some of those connections shut off when the car is off. Some stay on I think. You might have to at least unplug it when you get out of the car. Not sure.
Yeah that's what I was thinking, so I don't have to take it in and out of the house every time. Will leaving it connected to the stereo via an iPod hookup that piggy backs onto the XM connection drain my car battery or damage the stereo/car in any way?
Is a 3rd gen IpT that much more expensive to you? Some quickie price checks include $50 to $80. I guess you're looking to spend even less than that?
$80 for a 3rd gen iPod touch is kinda rediculous since you can get a 5th gen (32GB with camera) for $40 more...
$50 sounds OK though.
$120 for a 32 GB IpT5!? I presume you're using places like Ebay for used ones? Otherwise, that seems to be a stretch even for a refurbished or used IpT5.