Vnotes is the missing application that apple forgot to include. This very useful application allows you to record, play and share voice memos. It offers interactive memo recording using your iPhone’s built-in microphone and speaker. The new version will allow you to send your voice notes to your email. Also the newer versions of Vnotes only works on 1.1.3 and 1.1.4, because the programs runs under mobile account

This is only an iPhone application. It will crash your iPod touch if you try to record on it.
You can find this little utility under multimedia section in Installer.