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I want to video chat w/ my friend but I don't know how to :P Please give it to me in steps 10 points best answer :)

Okay, so I just got an iPod Touch (cuz I can't have a cell phone :P) and my friend has an iPod Touch too. I waswonderig is there an application that we can use to IM if were both in Wifi area, like our houses? Or is there a way to give my iTouch a phone # so we can use txtfree lite? thanks! 10...