what is the best way to get my gmail contacts on my ipod touch contacts list

Solution 1:

iTunes offers this option in the sync panel out of the box, at least with an iPhone: Google contacts iPhone

Solution 2:

I am using Google Sync for this, it sets my Google Account up as an Exchange server so emails, calendars (multiple) and contacts are synced over the air.

There is a walk through on how to set this up on the Google help pages for the sync feature.