Fans of the iPod Touch who felt left out due to last week's launch of the iPhone 3G S, take heart: there’s a new device on the way. In the BlueTool initialization script in the iPhone 3.0 firmware there are mentions of a new iPod Touch called "iPod3,1." Given that the current generation is referred to as "iPod2,1" it would seem to indicate that Apple has a new version in the works.
It's too soon to say what the new iPod Touch will look like or what its feature will be, but rumours point to a camera that takes video as being a likely addition. Other rumours indicate a larger screen, new wireless features, a digital compass, and GPS.
While fans would love to see more iPhone-like functionality in the new device, Apple has to make sure it doesn't give too much away: make the iPod too much similar to the iPhone and it removes much of the reason to buy an iPhone.
Apple's last upgrade to the Touch line came last September, thus it would seem reasonable to assume that the next one would be this coming September. You can be sure more info will slowly come out in the months to come.