(UPDATE: Note that Apple's recent 3.1.2 operating system update disabled the use of external microphones via the dock connector. Currently we don't have a solution to allow Voxie to record on a 1G iPod Touch.)
In addition to the information below, please read this blog post: http://www.bottlerocketapps.com/blog/do-you-need-a-mic-to-record-on-your-iphone-or-ipod-touch/
Q: Does Voxie work on the iPod Touch?
A: It works on the second generation iPod Touch with a compatible external mic. While we did not design it to, it also works on the iPod first generation Touch but requires the 2.2 iPod Touch software update and a compatible external mic that plugs into the dock connector, not the headphone jack. This is stated in the description on iTunes and the App Store.
Q: Do you need a microphone to record using the second generation SECOND Gen iPod Touch?
A: Yes. Voxie has been tested on a second generation iPod Touch using the Apple earbuds with integrated microphone and the lapel mic made by www.touchmic.com. Voxie has not been tested with “line-in” microphones. Apple is working on an operating system update which will allow line-in microphones to work properly. You should read the packaging and confirm that the product says it works for the iPhone or iPod Touch SECOND generation. Here is a link to Apple's store for their earbuds with integrated mic: http://store.apple.com/us/product/MB770G/A?fnode=MTY1NDA0Ng&mco=MjE0NDgxMg&p=2&s=topSellers. And here is a link to the TouchMic lapel mic that we like a lot: http://touchmic.com/products-page/ipod-touch-microphones/ipod-touch-mics---2nd-gen/touchmic-handsfree-microphone--adapter-tmic-003/
Q: Do you need a microphone to record using the second generation FIRST Gen iPod Touch?
A: Yes. Voxie has now been officially tested on the first generation iPod Touch by both us and our customers. You will need the latest 2.2 software/firmware update. And you will need an external mic that plugs into the dock connector (not the headphone jack). So, the Apple earbuds with integrated mic that comes with the iPhone will NOT work. Go to this link to see an article about which mic's work: http://www.bottlerocketapps.com/blog/power-to-the-ipod-first-geners-voxie-goes-old-school/
The "Audio In" on the iPod Touch First Gen is in the dock connector and NOT in the headphone jack. It acts more like a normal iPod than a 2nd Gen iPod or iPhone. So, dock connector mics are the only ones that will work. To be clear, the Apple earbuds with integrated mic that comes with the iPhone will not work. So far we know these mic's will work: Macally iVoice III and Macally iVociePro which can be purchased at most online stores and also here: http://touchmic.com/products-page/
Q: What if my recordings sound garbled when using a microphone?
A: Reboot your iPhone and try again. This happens very rarely, and only when using an external microphone. It is fixed by rebooting your iPhone.