EVERYTHING TD_Fan said is entirely right. Craig's list is a much better, safer and more local way to get rid of anything you own that you won't be using. The 32Gb Touch is in good enough demand that a fair price will move it fast. But those selling guidelines are extremely important. Rip-off is easy and can be dangerous. Protect yourself with the good advice you've been given. Any decent buyer who wants the item will come in person, will meet in a public place (and know why), and will bring cash.
OTH, you, as a decent seller must be prepared to demonstrate that the Touch works properly (clear all tunes off it but one so you can show it works), that you actually own it and are not selling a stolen item, and can provide everything it came with (ear buds, packaging, USB cable, etc) or anything you promised to provide with it in the ad you place. A buyer expects your honesty as much as you expect theirs. So if the buyer wants to examine and test the Touch in that same public place as you meet, you must be ready for that--while you hold their money. Then they either keep the Touch and you keep the money, or you don't complete the deal. Have a simple bill of sale made out ready to fill in the buyer'sname/address, the date and the amount it sold for. The only proof the buyer willhave that he owns it will be your bill of sale. So have one ready to fill out.
If you don't want to be bothered by phone calls, put only reply to this ad by email or similar note in your Craigslist entry. Else every fool will call at any hour day or night. Read other Craigslist ads selling anything, not just electronics, to get the gist of best wording. Absolutely make it clear how much $$ you want and, if your price is firm, say so, else you will get ridiculous offers.
Craig'slist is the best way but you have to think strategically and defensively and understand why buyers want some safety, too. It works when all parties are openminded and fully aware.