That 1750 figure comes from the Apple site, where a footnote says "based on 4minutes per song in 128Kbps AAC format." So that would be 7000 minutes, or about 116 hours of content. Mileage in MP3 would vary depending on the bitrate of the files.
Source(s):
http://www.apple.com/ipodtouch/specs.html

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There is more to this actually as the time will depend heavily on the bitrate that you save your music as.

You are looking at about 234 hours (14,040 minutes) of music at 64 Kbps
117 hours (7,020 minutes) at 128 Kbps
Source(s):
http://www.crutchfield.com/S-T0QPxIY2aXg/p_472TOUCH8/Apple-iPod-touch-8GB.h...

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People are recording and downloading music at better quality than 128Kbps, but at 128Kbps it's actually extremely close to 1min/MB.

I heard somewhere the average now is around 160Kbps, so that gives you 48 seconds per MB. That ends up being about 100 hours.
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Every song you put on an Ipod is assumed to be about three megabytes in storage space, every gigabyte holds about 1000 megabytes so your Ipod can probably hold about 2000 songs assuming the average space per song is 3 megabytes
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I would like to add the difference between the bitrates for jfinke.

96kbs: The sound clearly lacks definition: as an example, hall's noises are perceived as some breath. The result is comparable to a good FM radio.

112kbs: The sound seems less present and less natural than the original. The definition is a bit less good, the voice is less clear. Attacks are less spontaneous. The spatialization is different from the original recording: the sound seems to be located more far and more lower. There is however a very noticeable improvement compared to 96kbs.

128kbs: Hall's noises are slightly less defined than the original. The violin is a bit less present and the piano attacks a bit less sharp. The voice is nearly identical to the original recording but sibilants are less pronounced. We can notice the same spatialization problem as with the 112kbs's one although there is again a good improvement compared to the 112kbs rate.

160kbs: The sound is more natural than 128kbs but the improvement is less spectacular than during the two preceding stages. The sound is different from the original, without however being possible to tell in what. I think that the difference resides more in what we feel rather than in what we hear.

192kbs: The sound is not felt as the original recording. It is however totally impossible to tell in what.

256kbs: The sound is indiscernible from the original. It is impossible to make the difference with the original recording.

320kbs: The sound is indiscernible from the original. It is impossible to make the difference with the original recording.

CD Audio : The sound of the burned CD is strictly identical the manufactured CD. This test, although it could appear useless, is however necessary so in order to insure that it is impossible that the burning step introduces differences, that would have falsified tests.
Source(s):
http://www.mp3-tech.org/tests/gb/index.html

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It can hold about 1000 songs. You can visit Apple official website for more info about it:
http://www.apple.com/ipodtouch/specs.html
If you want to know how to convert video and put DVD movie on iPod, I think this step by step guide would help you
http://www.reviewstown.com/how-to-convert-dvd-video-to-ipod.html
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