The iPod touch 8gig is one of the first generation iPod touchs. Email was not delivered at that time. This is probably your issue.
You can confirm you have the original iPod Touch software bundle by checking the calendar application. If you CANNOT enter entries in calendar you have an old software bundle in your iPod Touch,.
You can purchase the full iPod Touch software, including mail, etc, from the iTunes store. Think it costs less than $20.