Tonight i installed NirSoft's little OpenSource program BluetoothView v1.37 on a spare netbook in use when i have to do things with Windows and instantly discovered my MacBook, macMouse, Nokia mobile, my Holden ute in the basement below me and my powered down iTouch!

What get's me is the iTouch has never ever had it's Bluetooth used or turned on (from in the cogs menu) but there on this program is all my iTouch's most intimate details... ( mac address etc) even when i thought it was powered down...

OK, it is not Discoverable or Connected for any worldly usable cause but my iTouch is busy 'spraying' out Bluetooth radio signal ALL THE TIME for no reason othe than as a drain on the battery even when the unit is closed down and must be booted up to do anything. It means that an iTouch never really powers down and is always using (draining) it's battery i guess. Seems rather weird, that's all. Any ideas?

I don't see that with my iPod Touch. A general purpose Bluetooth inspector only sees my iPod Touch if I turn on its Bluetooth via Settings > General > Bluetooth. The rest of the time it is invisible. When Bluetooth is turned on, the settings page says the iPod Touch is discoverable. This agrees with my observations.

Mine is a 2nd gen Touch running iOS 4. Which model do you have and which OS is your one running?

Also what do you mean by "powered down"? If the iPod Touch screen is off, so it wakes up immediately with a press of the home button (showing the unlock screen), then it is merely sleeping the display. Bluetooth could be active if enabled in Settings.

The "powered down" state is when you press and hold the button on top and it shuts down completely, requiring a similar action to turn it on again. In that state it really is powered down.