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I have both an iTouch and a 110. You can easily add a 16 GB SD card to the 110 and have the same amount of storage space. With the iTouch you have to me continually connected to read email. It only downloads email headers. If you are not connected you can not read the email body. On the 110 you can download the complete message and read the email off line any time you desire. I usually recieve about 100 AOL emails a day. I down load them in the evening and then at my leasure while disconnected from any service I can read, edit and delete emails. The emails to be sent and deleted will be automically handled the next time I connect. Whit the iTouch I can only read emails while connected.
If you are funding limited I would just go with the 110 for now. As Apple makes more software available the iTouch may become as useful to me.
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