I just updated my iPod Touch 2G to OS 3.0, right before they release the OS 3.1 (about 1 week earlier). That means I have paid USD9.95 for for the update, if I just wait for another few more days, I can update to 3.1 directly and is cheaper by 50%, just USD4.95 (Hei! Apple, any rebate?). Upgrade from OS 3.0 to 3.1.1 is free.
What do I get for OS 3.0 update? It enable the bluetooth chips that already came with iPod Touch 2G, and it support stereo (A2DP) profile, spotlight search, and added a voice memo application. The are many applications eg. Twitterrific doesn't run well on OS 3.0, you need to update those application as well.
I though I may be lucky to get the bluetooth mic working, but it didn't. Bluetooth stereo headset with volume control is working fine, but the bluetooth mic is not working. I still need a wire earphone with remote mic, which works on iPod Touch 2nd generation or newer, it will not work on the first generation of iPod Touch. How do you differentiate the 1st and 2nd generation of iPod Touch? 2nd generation has volume control button at the side.
How about the 3rd generation of iPod Touch? The 8G version should be the old (2G) iPod Touch. The 32G and 64G version is the new 3rd generation iPod Touch, which will support VoiceOver and voice control. These new functions will not work on the 2nd generation or earlier. For the new 32G and 64G version, you will get a faster cpu and faster display software, good for gamers.