Hi @ tracey_parece, the iPhone is not just an iPod that makes phone calls; it is a little more than that. The iPhone has other features that you would not find in the iPod.

The iPhone has a camera which is lacking in the iPod. The iPhone has a kind of GPS system that enables a person to locate a place at a particular time. If a person is lost and needs directions, he/she can use the iPhone without being connected to Wi-Fi, but with the iPod Touch’s map application, you need to be connected to Wi-Fi to have access to the GPS.

Another feature lacking in the iPod is the high-definition video recording and editing features. Most people find it difficult to choose one over the other because they have lots of similarities.
http://www.youtube.com/watch?v=jfkciveqG5w

Well, good question. The iPod touch can do many things that the iPhone can do - and they look the same. But they are not the same.

The iPod touch is a great device. Yes, you can play your music from iTunes. Yes, you can use all the nice apps that are already loaded like the iCal calendar and the address book and - if you have access to the internet via WiFi or perhaps at your home that has a wireless network set-up - you can enjoy the preloaded Safari, Mail and YouTube apps not to mention the countless other apps you can purchase at the App Store. However, if you are in any kind of more remote location or cannot access a WiFi network, you will not be able to take advantage of any of the internet applications or functions on the device. You can still play games or enjoy applications that do not require the internet.

You can do all these things with the iPhone. And...the iPhone takes advantage of the mobile telephone provider's (in this case ATT) 3G network and cell towers to keep you connected to the internet at all times - so you can use map and weather applications, shopping and restaurant applications for real time information. You can also utilize WiFi connectivity to boost or enhance your signal. Not only can you place and receive calls, but the iPhone has a still camera and some versions have a video camera. The iPod touch does not have a camera. Storage and processor speeds in the iPhone device - depending on the model - are generally faster.

Other than phone capabiltiies, the iPhone has a camera function that allows you to take pictures and save them onto the phone (and later downloaded to your home computer). The iPhone 3G has a 2-megapixel camera while the iPhone 4G is 5 megapixels.

With the iPhone you can also send text messages. You actually can send messages on the iPod but it requires extra software that costs money. Also, with an iPhone you can surf the Internet at a relatively fast speed without having to use a laptop computer.

Only the iPhone has Google Maps which is a simple GPS program so you can find your way in your city. There are other applications which only work on an iPhone and not on the iPod.

While the iPhone can make calls, it also comes with a hefty monthly bill. While I am partial to my BlackBerry, I think outside of the phone calls, the iTouch is a better bargain. Yes, the iPhone has a camera, however many rumors point towards a new iPod Touch coming soon with a camera of its own.

You can absolutely text and receive email on an iPod Touch, as well as use the maps and navigation providing you have a wi-fi connection. These days, wi-fi is so easy to find, if you can get past the lack of making calls, an iTouch may be the best option.

I used an iPod Touch on vacation in New Orleans and rarely was somewhere without wi-fi. This was really helpful to keep in touch with other via text and email as well as find my way around that beautiful city using the maps.

To be more accurate, it is an IPod Touch that makes phone calls. Okay, that isn’t exactly accurate because the storage space and the operating system of the IPhone 4 are actually more complex than an IPod Touch but in reality, if you have another phone, like I have a Blackberry and you also have an IPod Touch you aren’t losing out on much by not having an actual IPhone.

Of course in order to use the IPod touch to its full effectiveness you will need a Wi-Finetwork where an IPhone already has a dedicated internet network that goes through the AT&T network or other Cell Phone carriers that are allowed to be used by the IPhone. You also have to carry two devices instead of just the one.

I was in your boat. There are several things the iPhone does that an iPod can't do. One of the features I use a lot is Google Maps. The phone acts like a GPS device and shows where you are on a map and can give you directions to an address or a place. For instance you can ask to map a route to the nearest Starbucks. Google Maps is one application. The iPhone has literally 10s of thousands of applications. From flight and gate information for travelers, show time information for movie goers....just about anything you can think of, there is an application for it. These applications can use GPS, the internet, phone and email. So I think your question should not be is the iPhone just a glorified iPod, but which smart phone is best for me? There are other smart phones like Droid X which also have applications and similar features.