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This works on ipod 2g, 3g, 3gs, and 4g.
This allows the android swype that they have on their keyboards, its a very nice feature!
you have to be jailbroken, and if you are then add this source.
cydia.myrepospace.com/wyndwarrior
(dont worry it only has 1 pkg on the source)
then install iSwype
It will automatically be configured for all your apps that use a keyboard, it will also give you an app called "iSwipe Add" click it and add a word to the dictionary for later use.
very great feature, and hope you guys enjoy!