There are many many applications for the iPod Touch/iPhone and generally I've found that free applications are fine.
I use the iPod Touch for listening to Internet radio and I'm fussy about radio applications.
The best free one I found was Fstream but that could have had a few better features.
I have Pocket Tunes on my Palm Lifedrive and that is excellent given the constraints of the hardware.
So I invested in Pocket Tunes for the iPod touch. This was £4 well spent. It records, has an extensive list of stations and works well.
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