SBA-Mac, you gotta be joking with that reply. In case you are living on another planet, Facebook is a social media tool through which people communicate through wall posts, simple chat and private messages. It has nothing to do with video chat, and you don't need any kind of camera. It works just fine on iPod touch.
For the person who started this thread, you can update your Facebook app by launching App store on your iPod touch, and you will be prompted to update any apps that need to be updated, or open iTunes on your computer, log in with your credentials and click app updates if there are any. Sync your iPod after it's done.