I recommend the Palm Z22. I just read the whole thread and noticed that you already had one... here is my list of it's benefits just for a laugh.
It has the Palm software, which is decent.
It sync's with Outlook.
It "technically" has a color screen.
It doesn't have all the extra stuff that the iTouch has, basically the only thing it does is contacts and calendar. You can tell this is no frills because the thing has 3 buttons: Contacts, Calendar, and OK.
You can get it for under $100.00, used for less than half of that.