Details
The promotion runs from June 3 through September 15 of this year.  This is the most aggressive back to school promotion in the company's history and offers substantial savings because the free iPod comes on top of the Mac education discount.

Save up to $529 (USD)
The free iPod itself offers buyers up to $299 rebate towards the purchase of an iPod touch thus making the 8GB version free.  When combined with the Mac education discount, buyers can save up to $529 (USD) on the combined purchase.  The following lists the MAX education discount on pre-configured Mac models eligible in the promotion: (note total savings are in parenthesis)

• MacBook Air: $230 ($529)
• Mac Pro: $200 ($499)
• MacBook Pro: $200 ($499)
• iMac: $140 ($439)
• MacBook: $100 ($399)
  

Note that buyers have the option of a $199 rebate towards the purchase of an iPod nano but can maximize the rebate by opting for the iPod touch rebate.

Apple has posted the Terms and Conditions of the offer in the following PDF.  Clearly, Apple is attempting to increase the base of iPod touch users.  The iPod Touch runs the same operating system found on the iPhone and will be able to run future "iPhone applications" released via the upcoming iTunes App Store.

Steps to get your iPod