I'd talk to your daughter about this... since you're looking at the ipod touch, it's rumored (and likely) that the 5th generation is going to be coming out in the next 2-3 weeks.
The prices on the 4th generation have already started dropping at places like target, etc.
I would see if she'd want to wait, see what the 5th generation is going to offer, that the 4th gen doesn't, then go from there.
If she doesn't want to wait, you can get the 4th gen. 8 gb one for $204 right now, brand new.