I’m after a ipod touch for web\remote control duties so the current hardware version is suitable, but I read that OS3 (launched next month) will be a £10 upgrade cost. So is it worth waiting until it comes pre-installed, or do apple usually do a free OS upgrade offer to recent purchasers. If they dont surely no one will buy a ipod touch until they release the new OS?

I think the upgrade was free last time to recent purchasers. Though there were ways to get it for free anyway (by deliberately triggering a “Restore” from iTunes).

The rumour mill is pretty certain that a new iPhone will get released next month.
It’s possible that a new version of the Touch may get released at the same time.

So for that reason I’d hold off.

Typically the upgrade will be free to iPhone users on a contract, but there will be a charge for iTouch owners. I believe this is a restriction imposed by financial accounting rules.

-j