Personally, i wouldn't get anything Ipod... However, if those are the 2 you have it narrowed down to, i would have to say the Touch. The touch is practicly like an I-Phone but without the phone. The applications are truly revolutionary and are very user friendly. Another great feature of the Touch is that it has WiFi. IDK if you use/have WiFi all that much, but in my opinion, having the internet on my MP3 player would be great!
The only drawbacks to Ipods are that they can be a hassel when trying to back-up your songs/videos. Also, the Ipods are usually more expensive just because they have the letter I in the name. Another supporting fact would be that Ipods can only play certian typs of media, and can be a pain when trying to transfer songs and especially video if its not in the correct format.
-I would recomend any "Creative" products to anyone. My "Creative ZEN Vision M" may not have the letter I- in front of the name, but it shure as hell gave me a lot more bang for my buck than any I-pod could!

Depends on what your requirements are. I have a 2nd generation 8GB Nano. Get a Nano if you want something small and convenient. I recently upgraded to a 2nd generation 16GB Touch. Get one of them if you're planning on watching videos etc. (although the latest Nano does play videos I wouldn't want to watch them on that small screen). I still have the Nano and still use it. I really like it due to its size.

I've heard very good things about iPod Touch