1. Jailbreak your iPod Touch – using pwnagetool (only necessary for the last option)
2. An App that uses VoiP to make phone calls:

a. Skype – especially helpful for international calls but only helpful if you’re willing to pay a little money monthly

b. Fring – considered the most versatile; works with GTalk, SIP, AIM, MSN, ICQ, Twitter, Facebook. Has video chat over 3G!

c. Line2 – best option; Unlimited calling/texting in US and Canada; Make your own phone number;  comes with a caveat: is only free for 30 days and costs $10/month after that.

d. google Voice – My personal favorite at no cost except for international calls.

3. Getting Constant Wifi
Using the iPod at home usually poses little problem (that is, if you have wifi). The problem is, of course, going out of the house. One solution is the Verizon MiFi, Sprint Overdrive.                          This will only save you money if you were to chose AT&T’s unlimited plan (which is now actually changing).
Here is a cool graph describing how the financials will work out.

The battery Issue: the iPod will of course be fine all day, but the Mifi will not. The solution to this is the car charger for the hotspot Mifi.

4. If you jailbroke your iPod Touch, you can use Siphone SIP/VoiP, installed via Cydia. This is the best and most customizable route.

Ultimate pros/cons:

Pros

• You save a ton of money over paying for an iPhone (or any newer smartphone, really), whether you get a 3G data plan or not.
• Dropped calls are about as frequent as they are on an iPhone.
• Headset features work exactly the same as they do on the iPhone, so the experience feels very similar.
• The high-end iPod touch offers twice the storage as the high-end iPhone (64GB vs. 32GB).
• The iPod touch, bereft of a 3G radio, gets better battery life.
• If you get a cellular data hotspot (like the Verizon MiFi), you can keep your iPod touch in your pocket while placing the MiFi elsewhere for a better signal.
• A lack of cellular reception in your home is completely irrelevant since you can place your calls over Wi-Fi.

Cons

• Despite being pretty close, phone features are not quite as seamless on the iPod touch as they are on the iPhone.
• Dropped calls are not as obvious as they are on an iPhone, so it’s not very easy to tell when you’ve lost someone without looking at the screen (bad for the car).
• The iPod touch isn’t built with the intention you’ll use it as a phone, so you need to purchase a headset for it to really shine.
• The iPod touch doesn’t provide a GPS, so you will need to purchase an external GPS unit at an addition cost if you want to use it as a navigation device in your car (although you could try relying on Wi-Fi signal triangulation).
• The iPod touch’s camera isn’t nearly as good as the iPhone 4′s.
• If you want to make calls using a cellular data hotspot (like the Verizon MiFi), you have to carry around two devices.
• If you use a cellular data hotspot, its battery life is pretty poor (only up to four hours). While you can get an extended battery for your hotspot that’ll last the day, it’ll cost you around $100.

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Although Software update 3.1 is really nice and sparkly, I would advise against the update (but don’t freak out if you have because who knows how long it will take for the dev team to release more comprehensive news concerning the iPod Touch Hack in specific). Here are a few words from the Dev Team:

If you update to Apple’s new software using the normal iTunes process, you will lose your ultrasn0w unlock.  In fact you may lose it permanently, because for most people the baseband firmware cannot be reverted to a previous version (unlike the main application CPU firmware).

But don’t worry…our PwnageTool program — when it’s updated for 3.1 — will let you update your main firmware without touching your baseband firmware, so you can still have the best of both worlds.  But you must be diligent about saying “no” to your iTunes request this week to update your firmware.

Update: We’re currently working on PwnageTool for 3.1, and will be sure to let you know when it’s available!

So for iPhone users – Definitely do not update

for iPod users – ehhh, it would not be the end of the world.

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As most of you already know, Apple will be releasing the new iPhone and iPod Touch OS this summer, 3.0!! It is amazing! With hundreds of additional adjustments and new add-ons, Apple will only fortify its already solid position as the owner of the worlds best hand-held operating system.  The new SDK will allow for enormous strides to be made in the App world (including P2P)!

However, do not succumb to “Itchy Update Fingers” as The Dev Team terms it.  What they mean is not to update the second it is released. It will be free to all 3G owners and will cost iPod Touch Owners another $9.99 or so.  Although they are easily Jailbreakable, make sure you acquire the necessary update first.

Details:

Wait for a PwnageTool release that creates a custom IPSW that avoids the baseband update that 3.0 will try to force upon your device.

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