I have an iPod touch, and it works just fine with the apple headphones that include a mic. I didn't want to shell out for another pair of headphones, so I use the ones that came free with my Blackberry (also includes a mic) and that works fine too. I believe the earlier generation iPod touch required an external mic attached to the dock connector but the current models can use any headphone/mic in a standard size jack.
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Unfortunately, this isn't an isolated case. I've had to do this several times over the past few years, and each incident uses up time that could have been better spent elsewhere. It's even worse for other projects. If you produce software, have you ever suffered collateral damage from AV false positives?"