A good transcript with pictures of the launch as it happens here.

iPod Touch will be available in 8GB and 16GB capacities, $299 and $399 respectively, worldwide within a month. YouTube supported in the same way it is on the iPhone. Full integration with the iPhone music store.

Nokia have everything to compete with this - Ovi for the music store, the platform and the browser, they just don't have the design kudos or the marketing chutzpa (OPK the Finnish chairman of Nokia isn't even on the same planet as Jobs when it comes to announcing products - it's sometimes hard to tell if OPK is even alive).