ok: you ask two questions:
a)which linux-distribution would you recommend for a low-specs PC
b)how do i manage my itouch.
about b i don't know, but i'm pretty sure that it doesn't relate to the linux-distribution you run. A short search on google (term "itouch and linux") doesn't look bad.
So that shouldn't be a big problem.
now back to a)
dsl is quite fast, but i am not sure if its still under development.
ubuntu is a very friendly linux-distribution, but i would say it is not what one would call low-specs friendly. If someone will say: use Xubuntu, its for low-specs PCs, i will say: that uses still much more ressources than, for example, dsl.
Damn Small Linux uses a window-manager called fluxbox. A window manager manages the way the windows are getting shown on the screen. Fluxbox is very fast, and so are other window-managers.
The small or low-specs linux-distributions usually use window-managers. Those
small distributions are, for example:
antix
slitaz
feather linux
damn small linux
and much more.
The "full" distributions use
desktop-environments.
A desktop environment comes with a) a window-manager b) a lot of apps, more than one needs and c) a lot of services running out of box (printing, bluetoes and what not).
There are four of them:
Gnome
Kde
LXDE
XFCE
Gnome and Kde are the most popular ones and they offer the most comfort.
LXDE and XFCE are not that popular, but still quite popular, and still offer a lot of comfort. They are a bit faster than the first mentioned ones.
All the four of them are very easy to use, as they come with all that you need and got a nice look and fell out of the box. Therfor they are slow.
To make a confusing situation more confusing:
you can install any
window-manager like:
openbox
fluxbox
icewm
e16
etc.etc.etc
on top of a desktop-environment.
So: install any linux-distribution you are able to.I would avoid kde as an environment. After you have done that install a window-manager. When the login-screens comes up choose to boot into the window-manager instead of into the desktop-environmnent.
That way you got all the comfort of an environment and all the speed from a window manager.
About with which distro of linux you do that? It doesnt matter. Debian is a good one, as it doesnt come with that much services enabled after a fressh install. Others might be good for that too. Ubuntu ain't (for this special purpose).
Got it? here are the main terms: linux-distribution, desktop-environment, window-manager.
i hope this was of help.perhaps someone will have got better "tips" or ideas.
greetings.
http://distrowatch.com/
and linus72, a member of this board, has created different isos with all kind of window-managers. if you want to have a short look which one looks like what:
http://multidistro.com/