Here's some detailed instructions I found online. My thanks to the author.
Step 1: First of all, you need to sign up at www.youripodtouch4free.com
In the lower right corner, enter your email address. Make sure you use valid information or this will not work! If you don't want to give out your main email address, you can make a new one if you'd like. Gmail (Google's email service), Yahoo, and Hotmail are all great web-based email providers. After you've entered your email, you can go on and click "Sign Me Up".
The next page will ask you for your name and address. It is very important that you use valid information here as well. This is so they know where to send your free ipod touch. Don't worry, this site is secure. It is safe to enter your information. They do not sell any of it, as it states in their privacy policy.
Next, you will need to choose what type of account you want to start.
There are two types of accounts.
Points based account: Requires you to complete a certain amount of offers in order to finish your requirements. This amount varies depending on the gift you chose.
Referral based account: Requires you to complete ONE offer of your choice, and then refer a certain amount of people to sign up and complete their own offer.
Most people believe that a referral based account is the easiest and fastest way to get your free gift.
*~*You've completed the sign up process! That wasn't so bad, was it? On to the next step!*~*

Step 2: Now that you've signed up, do an offer!
Don't worry! These offers consist of many trusted and reputable companies such as Blockbuster, Stamps.com, and even Ebay. Some of these offers such as Stamps.com are completely FREE trial offers.
In order to make sure you get credit for doing one of these offers, there are a few browser settings you'll want to check in order for the freebie site to track your offer completion so that YOU get credit for what you have done. I suggest using either Firefox or Internet Explorer. Other browsers may not be able to track your offer completion correctly.

Now that you've done your offer, you can work on your referral requirements. On your status page, you should see your unique referral link in the middle of the page. This is the link that you'll want to give your friends, family, and co-workers. This is the fastest and easiest way to get referrals since you can help them, as I have helped you. :) If you run out of friends and family, don't worry, there a plenty of ways to get referrals. Use your imagination, but do NOT spam your link in places where it's unwanted. This will cause your account to be put on hold and you won't get your free ipod touch.
At this point, you should have done an offer and received credit for it. Then attained the required amount of referrals with a green check mark next to their name. (The green check mark means that your referral has done their offer and is providing you credit.)
You will know that you are ready to have your account approved when your status bar reaches 100%. When this happens, right underneath the bar is a link where you will submit your account for approval. This is when they will check your account and make sure that you and your referrals have all followed the terms of service.
Once your account is reviewed and approved, you can place an order for the free iPod Touch of your choice. 8 gig, 16 gig, or the all new 32 gig!!
As long as you have followed these guidelines and did not try and fraud the freebie website, you WILL get your free ipod touch. You don't even have to pay for shipping. :)
To sum this up:
* You cannot use any ISP that uses a proxy such as AOL
* Do not sign up using a public internet connection. (Library, school, workplace, etc)
* The best browsers to use for the offers are Internet Explorer 6 or Firefox.
* Clear your cookies and set your computer to accept all cookies before completing offers. Disable any pop-up blockers.
* Make sure you read all the fine print and TOS for each offer you are interested in before completing.
* After you have completed the offer, make sure to leave the confirmation page up for at least 5 – 10 minutes. This will help in ensuring you get credit.
* If you don’t get credit for the offer instantly, wait a little while and see if it credits. Sometimes the site gets a little behind in reporting the sign ups.
* To avoid getting your account put on hold, never sign up for the same site more then once and do not complete an offer more then once.
* Never EVER provide false information.
*~* You're done!! Enjoy your new Free Ipod Touch!! *~*