[palepilsenpin0y]

I'm assuming when you connect your 2nd Gen iTouch into the same iTunes, everything (including all the apps you paid for) will sync smoothly as if it were a carbon copy of your first gen. But I'm not entirely 100% sure because I never had the same exact scenario as you have.

If ever though, I will strongly suggest jailbreaking your iTouch. It's extremely easy, and even though apps aren't too expensive, it's good to have the option to download EVERY single application you want for free. Even in packs from sites like Pirate Bay.

Don't worry about warranty because Apple doesn't even check your iPod if it's jailbroken or not if you need to fix it. I speak from experience because my 32GB iTouch had a problem where no sound was coming out of the left earphone (any earphone/headphone). I gave it to Apple (Oakridge Mall branch), and they just checked if I was telling the truth and they literally gave me a BRAND NEW one. Plus you can always format it to the original settings which will end up in the jailbreak disappearing as if it were never there.

But that's just my two-cents. Best of luck!