That's right folks, at long last the iPod Touch has not one, but two cameras.
The front-facing camera is just like that of the iPhone 4, with support for VGA quality photos and video.
Unfortunately, the rear-facing camera is only 960x720 resolution. That's only about .7 megapixels, compared to 5 megapixels on the iPhone 4. It's likely that Apple had to sacrifice still photo resolution in order to squeeze the camera into the Touch's slim package.
There's a microphone hole next to the rear camera. Apple's updated the audio input and output prowess of the new Touch to enable it to play nice with FaceTime.
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