The original iPod Touch does not support incoming connections through the headphone jack. I believe that it only carries audio out, nothing in.

You are wrong about the Stereo headset though. The remote on my iPhone headphones does not work at all with the iPod Touch. I just tried clicking the little mic, and it did not pause the music or change the song. You're out of luck if you want to make us of the new remote feature, but you can still get them if you want better audio quality. Standard iPod buds are okay, but definitely not great.

Another thing: the new In-Ear headphones and the remote work on the iPhone, but the volume controls don't for some reason. Some people have been saying that the iPhone's headphone jack lacks a special wire/connector for it. If you got a new iPod though, it would all work seamlessly I'm sure. Wink Good luck with the headset.