I have no experience with the software myself, but I'm pretty sure that with most S60 Nokia phones (with WIFI) you can use some software called JoikuSpot which will create a temporary wireless hotspot which you could connect to with your iPod touch?
Thanks for that - Yes heard about joikuspot (and there's a Windows Mobile equivalent WMWifiRouter). But I've heard they're a bit slow for some reason. Plus you end up having another smart device, rather than a bog standard low end 3G phone. Fingers crossed iphone software 3.0 will enable full bluetooth functionality.