Erica Sadun points us to Ipod Touch Fans forum when an enterprising hacker got the iPod touch Audio input working. For the finer details head over to the iPodlinux Wiki where they've dissected the dock connector to its core.
We don't have to tell you (but we are obviously anyway) how important this is for applications going forward. What it means is that if some company like Fring gets off of their asses and creates a Skype or Vonage application for the iPod, we'll be able (with a cheap dock - headset adapter) to use iPod touches to make and recieve calls.
