I have a strange problem with my ipod touch. It has been working fine up until now but recently no headphones or any jack input will not go all the way into the ipod, and it feels very loose in the ipod, and I can still hear music out of it when I plug it in like this but it is very wierd and distorted sounding? What is wrong with it?

Is the headphone jack inside the iPod loose? It's usually pretty sturdy but if excessive force is applied or the earphone is plugged into incorrectly, it could be damaged.

What I would try to do, is put your iPod Touch into SSH mode and plug it into your Mac. Not sure if it works the same way as it would with a Windows-oriented computer, but its worth a shot.