20 days ago the mere rumor of VoIP on the iPod Touch was a very hot topic. Imagine basically turning your iPod Touch into an iPhone without having to deal with an AT&T contract (or service). Well now we have video proof (below) to confirm that it does in fact work.

According to CrunchGear the software to do this should be out tomorrow – [UPDATE]: here’s the official site with the countdown, it will in fact be out tomorrow and will be FREE. You will need an external mic attachment to make this work as the iPod Touch does not have a built-in microphone.

I wouldn’t be at all surprised if this in turn makes Apple rush their 1.1.3 update (which I assume will update the iPod Touch as well as the iPhone) out the door even quicker to quash it.

I’m still holding my breath for Skype on the iPhone when the development kit comes out early next year…