What can be done more with an old ipod touch(First generation)

Hi I had an I pod touch (first generation) with version : 1.1.5(4B1) which I bought from EBAy long time back in 2008

I had installed latest ITunes and browsing if I can find any applications that can be run on this 1st gen iPod. But most of the apps are generally compatible with 3 and greater.

Are there really any for 1st gen? If no, what else can be done apart from playing music and videos..

I had seen http://support.apple.com/kb/HT2052 which says can be updated to iOS3.1. Has anyone done ...any problems faced..

Any other suggestion you have apart from selling it :-)

Maybe not the best iOS device nowadays but it still makes a nifty remote!
I have an Ipod Touch (2nd gen though) that I use to control my mac-mini media center. It's very intuitive to manage your playlist (iTunes DJ mode) with the Remote app.
And I use Mobile Mouse Pro to use my Ipod as a mouse. User experience is not as sweet as Remote but still a great app which eliminates the need for keyboard.

I also have a 1st generation iPod Touch. I have consistently upgradedthe operating system every time an upgrade was available, so I am now running iOS 3.1.

No problems whatsoever, running all sorts of apps, many of which required iOS 3+.

Don't confuse the operating system version with the iPod/iPhone generation (gen 1, 2, 3 or 4).