I recommend downloading a few cartoons - when our 3 year old wandered in at 6am on Saturday I just handed her the ipod and she happily sat there watching 3 double bills of Roadrunner - never had to get out of bed and got extra 40 mins kip.
My old fairly rubbish i-pod speakers work with the touch, but don't recharge it.
have got one of thses -which is pretty good and recharges, but not especially portable.
But of course the tounh has its own built in speaker, which means you can relive the transistor radio music listening experience
