Teachers across the country are finding and sharing ways to use iPod Touches in the classroom. I would have loved an iPod Touch in elementary school; hopefully more kids will be able to use them for interactive learning in the future. Here are several links to these often hard-to-find education resources. Most of them are written by teachers that are actually using them with their students. Please leave a comment if you know of others.
The following document is available as a Word file (the original URL is located in the description on Scribd). I couldn't view the file locally, thus the Scribd version. The author of the original document will have the most up-to-date classroom app recommendations.
My apps for education (some featured in the links above!):