This rumour has been circulating for a while, but Van Buskirk writes: "A well-connected source tells us those rumours are on the money, and that Apple's factories in China are already manufacturing iPod touch models with integrated cameras and microphones."
The short piece talks up the fact that with inclusion of a microphone and a quick download of Skype for iPhone, the iPod touch would become a nifty VoIP phone wherever you can get a Wi-Fi connection. The new iPod would most likely be enhanced with voice commands, just as the iPhone 3GS is.
There's nothing in the post about the possibility of a 64GB iPod touch, but we're still counting on Apple to produce one when the line is upgraded -- most likely this autumn. (Last year's new touch roll out was 10 September.) Many people are hoping Apple will introduce a jumbo iPod touch/netbook/tablet in September as well.