Shredder CHess is very good, Peggle is a great game and is on offer!!!
App suggestions?

I use Nimbuzz for IM, Wikiamo for Wikipedia, Google Earth for armchair birds-eye tourism, FiatLux for a flashlight (surprisingly useful actually), and when I'm not playing with one of my chess apps, I play Wurdle (find-a-word), Chicktionary (kind of like solo Boggle), Tetris, and StoneLoops! (I love Stoneloops!)
One of my favourite games is Lumina, an unbelieveably simple memory game (like Simon from the '70s). Good stuff.

Check out Shazam! Ever heard a song in a restaurant and wanted to know what it was? Hold up the iPhone to the speaker and run Shazam and it will tell you. It's amazing.
Pandora's iPhone app is kewl.
iPump is one of the best excercise apps.
ToodleDo is a super to do list online and they have a $0.99 iPhone app.
Skype -- because everyone needs skype even if they don't.
OK i just got a new ipod touch, and i wanted to know some Apps that would be awesome, so..ya know just comment the apps u like!