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The "generation" label refers to the version of hardware you have. iTunes will update the software on your iPod to the latest version. Gen 2 Ipod Touch also has volume buttons on the outside, as well as a speaker and the ability to use APPS from the Apple Store.

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Q: Difference between 1rst and 2nd gen iPod touch Is there a sftware difference or smthing I just got a iPod touch on eBay and its a 1rst gen. Got worried not knowing if I shouldve gtn a 2nd gen insted?
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