The 229$ ipod touch as a web orbiter?
I have an iPod Touch and I can say that even though the web orbiter loads, it's pretty tiny! portrait or landscape. The better half's PDA loaded with the orbiter software was nicer. I also had to edit the refresh rate in the HTML page in order to be able to enter the username/password before it reloaded and erased everything.
Try changing from Basic to Small-UI and see if that looks better on the iPod Touch. The iPod Touch has a fairly low resolution, so the SmallUI might be better suited.