Argos are currently selling 2nd gen Itouches (16 &32) for less than they are selling 1st gen.

You got me all excited then
More descriptively, Argos are currently selling 1st gen for more than 2nd gen!

yep, its cos they had an offer on last week where the 16gb touch (1st gen) was on offer for £140. So, they marked the price up to make it look more of an offer!