In the App Store, you’ll find many applications that can turn your iPod touch into a VoiP phone. One limitation with the iPod touch 2G is the absence of a speaker and built in microphone. USBfever, the maker of innovative iPhone and iPod touch accessories has launched the the missing link product to turn your 2G iPod touch into a real VoiP phone.

Mini Capsule Microphone / Speaker Combo for iPod touch 2nd is here to transform your iPod touch into a talking device. 

This tiny capsule like product acts both as the speaker and microphone on the iPod touch 2G, the simplest solution ever. Though this mini capsule is designed specially for the iPod touch 2G, it is said to be compatible with other Apple products as a microphone only or speaker only add on. 

The product is said to be compatible even with the iPhone 3G (not the 3GS) and other mobile phones that use 3.5mm audio socket. Not a bad deal at all for $16.99. Get it here.