Over the holiday I got an iPod Touch, which is most excellent. It's the newer, slimmer, 4th generation, so most of the cases on the market don't fit it correctly. I was bored, and I had stash yarn to burn, so in a couple hours I knit this for my iTouch.
It's got all the features I need - it hugs the iPod just right, it cushions it from bumps and falls, it lets me see and use the screen and all the buttons, and it even has holes for both cameras (I tried taking pictures out of them and you can see through the holes - the photos gain a bit of a wooly halo, but it is useable :)
I'll be releasing a pattern for it soon - it's perfectly tailored to the design of the iPod Touch 4th generation. It's got holes for the power and volume buttons, front and back cameras, screen, and USB cord/headphone jack. It's also got a flip cover for when you're not using it, and a button closure right over the home button.
I'm writing up a pattern for a perfectly-fitting fourth generation iPod Touch cover, which could be easily modified to fit any generation iTouch or iPhone - just the addition of some more stitches for extra width, removing or adding holes, and so on. It's surprisingly functional, and keeps you from having to touch that cold metal backing or letting the smooth thing slip out of your hand. Plus, it's pretty, and it's a quick knit for sock yarn leftovers.
Update: The free iTouch Jumper pattern is here.