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I have an iPod Touch but use it only rarely. I bought a case to keep it in with a mind for it needing to be protected when not in use but I also needed one that would be effective in keeping it safe on the few occasions I took my iPod Touch out.
I looked at many cases, this folio style cover from Belkin International was the one I chose. The case has a leather outer and microfiber inner, the leather provides protection while the microfiber is gentle against the screen and back of my iPod. The cost was £14 three years ago, you can now buy the case for £10 and there is now a wider choice of colours available.
The iPod slides into the case and locks into place. Since I first locked my iPod into this case I have removed it just once, the hold of the case is strong and at no time has my iPod ever felt less than tightly held.
Protection is by the cover of the case flipping over to cover the screen. An iPod Touch is very similar in build to an iPhone so the screen is large and easily scratched because of the large surface area. The Verve case will vastly lessen the risk of scratches and accidental screen damage just by covering the area but the microfiber acts as a extra level of protection by providing a cushioning effect.
Three years of ownership has seen my iPod Touch kept on a shelf in my bedroom for most of it's life, my closest estimation is that I have actively used it fewer than 20 times. This was the level of use I expected and am happy with my purchase of the Verve case for shelf storage as well as in my pocket or bag storage, the flip cover ensures dust is kept away from my iPod Touch when it is not in use for a period of time and the same design protects all areas.
I doubt if the Verve case would be highly protective in the event of my iPod Touch being dropped but it is sufficient for the type of knocks and light bangs that are sometimes unavoidable. There is no damage to my iPod Touch with both back and front remaining in the best possible condition, a condition that is not far from new and offers the lie of my iPod being the age it is.