Yo.  I just "inherited" my wife's 8 GB iPod touch.  I also have a $10 iTunes gift card.  I want to get a few games for it.  I'm looking at role play or strategic, preferably turn-based.  Anime or western style is fine.  Also, I love horror.  Any recommendations?

Horror :0!

Deas Space is coming next week :D! price not confirmed

http://www.youtube.com/watch?v=jyEyJZSBPmQ 

For RPGs I mostly played non turn-based eastern 2d rpgs xD

Zenonia and Zenonia 2, Inotia 1, 2 or 3, Across age DX (all this in the range of 2-3 dollars each).And Square Enix have a lot of RPGs, the psp remakes of Final Fantasy I and II (6.99 i think), and a game called "Chaos Rings" with really nice graphics (but its 12 dollars :O). http://www.youtube.com/watch?v=A9oOvmu2-XU

For Western RPGs you have Aralon: Sword and Shadow http://www.youtube.com/watch?v=ofzeOJQgTLY

and Rimelands: Hammer of thor http://www.youtube.com/watch?v=zEEE_rkeA_w

Gameloft have a clon of Final Fantasy 12 called "Eternal Legacy" but a lot of gamers dont have much good things to say about that, is not that good :/. http://www.youtube.com/watch?v=qTaja76756E and a Diablo-like game "Dungeon Hunter 2" http://www.youtube.com/watch?v=xPzPCqHVhgM&feature=fvw this has better reviews :)

http://www.neogaf.com/forum/showthread.php?t=405311&page=199

www.toucharcade.com

this are nice pages to check iphone games :) and appspy.com, touchgen.com, pocketgamer.com are good also, hope i help :D

Angry Birds. Best phone game ever. (Not sure how much it costs but its free on Android!)

So far, the Zenonia and Zenonia 2, Inotia 1, 2 or 3 are attracting my attention.

If it is a newer iPod Touch, you could give Infinity Blade a try

But if its older, it may blow it up..

David made some good recommendations. I really enjoyed Rimelands in particular.

For something western and turn-based, I recommend Undercroft.

For a turn-based strategy game with a retarded amount of content, try Battle of Wesnoth.

If you like Nethack or other Rogue-like dungeon crawlers, get 100 Rogues.

Sega has some classic Genesis titles like Shining Force and Phatasy Star 2.

Square has their high production Chaos Rings, if you like their brand of RPG.

For horror games, try out Mystique or Aftermath.

If you want a really original horror game, try Papa Sangre, a video game with no video. You're blind, and you have to navigate the game world with sound only.

I haven't used it for gaming extensively, but I can say that Sword & Poker is pretty fun and a little different from what you'd get in other RPGs.

It won't even install on my 2G touch.

Chaos Rings, Infinity Blade, and others mentioned are fairly good and well worth it.

On a side note, while Angry Birds is one of the top selling games (passed 10 million a while back), I honestly have not been very impressed with it. Osmose is a much better casual game in my opinion.

Yes, it's 2nd gen.  Might blow up as you said.