It seems that the touch has much more difficulty with the GPS than the iPhone does. Here's what the touch reported:
Expanding the map showed that the GPS was jumping all over the place adding almost 2Km to the actual distance walked. Cleaning up the map took a while, but the difference is clear:
This is disappointing because I bought the touch so that I didn't have to use my phone, running down its battery and having the potential for access to more music on the iPod rather than the phone. It would also mean that if I didn't want to take my phone with me for some reason (I can't think of one except maybe because I was planning to run through a river and didn't want to ruin a phone!), I wouldn't have to. Shame really, the new touch is slim and light and lovely like it should be.
There may be a reason, even a fix, but at the moment, while I love the new iPod, I remain disappointed with the GPS performance.