As expected, the biggest news with Apple’s second-generation iPod Touch is its drastically reduced price. The 8GB version of the iPod Touch is now $229 (down from $299), the 16GB is $299 (down from $399), and the 32GB is $399 (down from $499).

The latest firmware for the iPod Touch (version 2.1) is available for both the first- and second-generation players, and adds support for on-device Genius playlist creation, Microsoft Exchange push e-mail, multi-language keyboard and dictionary support, MobileMe, multiple calendar management, contacts search, and a scientific calculator.

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