Differences between 1st Gen + upgrade and 2nd Gen?

Hi all. I was looking into purchasing a new iPod touch, but before I do so, I was wondering if there is any difference between getting an iPod touch 1st generation and purchasing the software upgrade and simply purchasing a 2nd generation? Reason being that I can get a 1st gen much cheaper than the $10 that it would cost to get the software upgrades, so if I can do that it would be great.
So is it a seamless upgrade or will there be some small differences between the two? Thanks in advance for the replies!

Updating a 1st gen Touch to 2.1 is the way to go if you don't care too much about the primary differences, where the 2nd gen Touch has the speaker, external volume control, and slimmer at the edges. I've had both and am glad that I have updated to the 2nd gen Touch.
Note that the 2nd gen Touch does not have the same charging circuit as previous iPod models, so if you have 3rd party chargers that rely on the 12V (firewire) pin on the iPod's dock connector, those won't work. For the 2nd gen Touch you need to have "Made for iPod" designated charging accessories which use the 5V (USB) pin of the connector. Chargers don't specify which pin of the connector they use, so if you go with a 2nd gen Touch be sure that any accessories you buy for it are designated specificatly for the 2nd gen.

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