The microphone is located at the back of the iPod next to the camera.
No, you can get it for an iPod touch for the same price. Every app in the app store can be bought for iPhones and iPod touches, but some work best on iPhones, because they need microphones. (you can get these for iPod touches)
The second generation iPod Touch does not have a built-in microphone, but you can connect the new iPod earphones with the controls, which does have a microphone and will work with the second generation iPod Touch.
IPod microphones are best suited for recording audio directly to the Ipod. The high performance microphones like alesis ProTrack or Belkin GoStudio can turn the Ipod into a full-fledged mobile recording studio.
To get voice control on your iPod touch you need to have the 3.0 software or later (for any generation of iPod Touch). You must also have an external microphone for the 1st and 2nd generation iPod Touches, since the 1st and 2nd generations do not have built-in microphones.
There are none
yes
yes
iPod Touches come in 8GB, 32GB and 64GB.
No. Only iPod touches 4th generation and above can record video, as these are the only iPod touches with cameras.
There hasn't been a rise of reported iPod Touches that broke on their own. iPod Touches do have the ability to break, but the construction is pretty sturdy to where it is not often the iPod Touch completely breaks. Although iPod Touches do break, it is not likely they will break on their own.
Me.