Well lookey here. Vietnamese Web site Tinhte has posted pictures and video of a prototype iPod touch with a 2 megapixel camera. Here's a great shot of the sticker with all the components meticulously detailed.
The unit, labeled "DVT-1" (for Design, Verification and Testing), is running a diagnostic utility from manufacturer Foxxcon that eschews the iPhone OS in favor of a more utilitarian UI with rows of icons for testing all of its various hardware functions (got to love that Serial Number icon, eh?):
Speculation abounds that the new iPod touch could grace the stage with the next-generation iPhone when WWDC opens on June 7, 2010.
This video provides a tour of the device.
Photos: Tinh Te, via Engadget
Update: Eric from MacRumors writes:
This is an old prototype. The model number and serial number indicate it's a third-generation prototype manufactured in June 2009. So it's the same as the other camera-enabled iPod touches that leaked last year. Apple of course pulled the feature before releasing the new models last September. It doesn't mean a camera-enabled iPod touch isn't coming, but it would be a new model with presumably other changes in store. And I'd be shocked if it came at WWDC instead of at a fall media event.
Read his post about it here.