Apple has released the iPod Touch 2.0 firmware update bringing the similar feature set to the latest iPhone software 2.0.

iPhone 2.0 Software Update for iPod touch includes many enhancements for Mail, Contact, and Calendars, as well as support for MobileMe, Microsoft Exchange Active Sync, new languages, a scientific calculator, and more. This update also includes all January Software Update applications and features.

The biggest improvement is the availability of the App Store letting iPod users install applications made by thousands of developers since Apple has opened its Software Development Kit a few months ago.

The update costs $9.95 (initially announced at $19.99) and is available through iTunes.