Hi waynedd and welcome to Chordie! I don't have an iPod Touch (though it is on my "wish list"), but there is some info here that may be helpful.
From the front page:
Save your songbook as an iPod Notes files. These can easily be tranferred to your iPod. Works on most versions of the iPod. The newest generation can even show the chord grids. The songs are stored as text only with chords in brackets. A very compact format for such small screens. This feature is only available after you log in.
A thread that discusses it:
http://www.chordie.com/forum/viewtopic.php?id=5432
Hope that helps!
Rule No. 1 - If it sounds good - it is good!