Just when you thought you could forget about the elusive bugger, rumors about an iPod Touch with a built-in camera start up again. The latest report points to a Spring 2010 refresh that will finally include a video camera.

The latest rumor reads like it's August all over again, but it does have one particularly disappointing aspect. According to the source, the iPod touch camera will match the not-so-hot quality of the nano's.

Here's to hoping the engineers can somehow stuff the iPhone's camera into an iPod Touch. Sure, there's not much space to work with in the Touch. And Apple releases iPods in fall, not spring, but we can believe. [The Examiner via 9 to 5 Mac]