It does cost 99¢ to buy and according to the specs it works with the IPod Touch. Just keep in mind that the IPod Touch does NOT come with a camera so the scanning part will not work. I don't have this app (I love FREE apps) to test it out with my IPod Touch.
Grocery iQ 2.0
Powered by Coupons.com and touted as the best grocery list management application by the New York Times, Grocery iQ is a “Staff Pick” from Apple. In addition, Grocery iQ has recently been the Number 1 Paid Lifestyle application in the iTunes App Store.
Barcode Scanning — Use iPhone camera to scan bar codes, instantly add scanned items to shopping list, and find matching coupons; no typing required
Grocery List Organization — Arrange grocery list by categories, or by the aisle layout in the store where you shop!
Synced List Sharing — Multiple users can share a single shopping list and last minute additions are automatically updated and displayed in real time
Coupons.com & Savings Card Integration — Shoppers can browse coupons and add items to their shopping list by simply selecting coupon offers; shoppers can also browse and select Savings Card coupons
Print Wirelessly— No computer needed as shoppers can print their coupons wirelessly via HP printers connected to their network