So much iPhone news came today that it's tough to keep track of it all. One thing we wanted to make sure didn't get lost in the shuffle was the iPod Touch news that came out today. Specifically, the iPhone 3.0 software will come to the iPod Touch for a $10 upgrade fee and will include an "unlock" to give the iPod Touch the Bluetooth functionality that's being added in iPhone 3.0.

Wait, what? Yes, the iPod Touch (at least the 2nd gen version) does indeed have a Bluetooth chip in it. We don't know exactly where or how the thing is hidden away inside, but Apple came clean today and said they could 'unlock' it. Longtime readers may remember that back in September this very issue raised its head and the verdict was that, well, we didn't think it was there. The deal is that modern devices like Smartphone and the iPod Touch often cram multiple radios and other functionality into a single chip. Back in September it looked as though the chip on the iPod Touch could support Bluetooth but that, well, it was more likely that it was there for Nike+'s "proprietary 802.11 protocol." So rumor smashed -- incorrectly.