Rumors of the third generation iPod touch getting a camera -- even video camera -- is nothing new, however Wired.com now claims they may be getting a built-in microphone as well:

A well-connected source tells us those rumors are on the money, and that Apple’s factories in China are already manufacturing iPod Touch models with integrated cameras and microphones. An Apple spokesman declined to comment when reached by phone.

With the addition of video to Camera, and the Voice Memo app, combined with a built-in mic making VoIP even easier, we'll come out and say it -- ultimate non-phone handset is nigh.

Apple typically unveils new iPod touch models once a year at their special music event, alongside other iPods and related announcements -- which last time, at Let's Rock included the iPhone 2.1 firmware and iTunes 8.