The iPod touch will be one of the most popular toys this holiday season according to predictions from retailer Toys R Us. The chain has released a list of 20 toys that it believes will be top sellers this year, knocking the iPod nano from its top spot. The UK Telegraph reports that "Optimus Prime and his fellow robots from the film Transformers, as well as last year's favourite Dr Who" are other predicted hits. The iPod touch is available in two configurations with 8GB and 16GB storage capacities for $300 and $400 in the US, respectively. The 16GB version is priced at £269 in the UK.

The iPod touch's 3.5-inch widescreen display displays photos just like the iPhone, and supports Apple's "pinch-to-zoom" technique as well as the customary slide for unlocking the device. The iPod touch features CoverFlow technology, and includes a WiFi meter in the top-left corner of the screen to monitor signal strength. The iPod's wireless capability includes 802.11 b/g support, and utilizes the company's Safari Web browser to login to public wireless networks as well as surf the Web.

The Cloud, a UK network of Wi-Fi access points, recently announced that it is giving Wi-Fi access to users of the iPod touch with a new service dubbed "Cloud Unlimited Music," which will be priced at £3.99 per month and is not subject to any minimum term contract.