iPhone OS 3.0 update brings stereo Bluetooth support to the 2nd generation iPod Touch, although it will only work with compatible Bluetooth stereo headphones or speakers. You wont be able to use just about any Bluetooth device with it as reported by many users. The iPhone 3.0 unlocks Bluetooth 2.1 + EDR with support for wireless streaming 2-channel audio with A2DP, wireless accessory control, and peer-to-peer connections.

It’s still very crippled as most of you might not even be able to use that Bluetooth hands free headset you got for your cell phone, to use with your iPod Touch to Skype, which is really unfair to be honest as Bluetooth is supposed to be an open protocol. You can get the Motorola S9, if your current Bluetooth headphones are not compatible with your iPod Touch.

The Broadcom BCM4325 wireless communications chip in iPod Touch which provides the Bluetooth capabilities also has an FM transmitter in it which still doesn’t work even after the OS 3.0 update. You might have to wait for OS 4.0 to unlock it.