hi there I would like some help pls. I am thinking of buying the Nike + for my iPod but don't know if it's compatible with my first gen touch. Could some one pls help. Many thanks

Nope, only works with 2G.

Is there much difference between iPod touch 1st gen and 2nd gen?

lasts longer for both audio and video and features external volume controls, a built-in speaker, a contoured back and built-in Nike+ support

Thats about it really though

So do u think it's worth upgrading to iPod touch 2nd gen or waiting for iPhone to come down in price then?

Like for like, probably no. I upgraded from a 16GB 1G to a 32GB 2G, which was worth it for me.