Which is better old generation or new?

it all depends on what you want to do with your iPod. if you are looking to jailbreak your ipod touch, i think the first generation is best, only because at the time, Apple didnt put such internal security into the ipod to prevent jailbreaking. if you are looking for an ipod to play music and games on, and not experiment with jailbreaks, then by all means, get the newer generation.