Tried the iphone 3g and it works. I had only a little few other problems and that probably because I had the movie application that RB ships with open on the touch and then tried it on the 3g while the touch was still booted up. I think that once they both started working connecting more than one device to the RB might have caused some confusion with Ajax as it didn't know which device was trying to control it.

I may do some more testing with both devices. I haven't updated the ipod touch yet, and I may wait a while, because I'm still afraid 2.0 might cripple my ability to play other types of mp3 rendered movies - high resolution and some of the faster render settings in handbrake. I can rip a very high quality handbrake movie at a higher quality than ipod in 20 minutes. But rendering to h.264 itouch format not only results in lower quality but much longer render times. And to have to render a lot of movies just to move them the the ipod touch and not the iphone, is something I don't want to do. And lastly although it looks like RB is working with the iphone 3g, the lack of being able to put my own video onto the new 3g is a bad thing.