Will iCloud sync to my 2nd generation iPod touch?

You cannot upgrade from the iPod touch 2g

You will still be able to sync calendars thru iTunes on USB (although you may see a few phantom calendars appear on your iPod, but you can hide them). iTunes will not sync Address Book to an iOS 4 device (the database file appears to be in a different location on the Mac connected to iCloud) and if you try to replace all contacts you will end up with an empty Address Book.

"iCloud requires iOS 5 on iPhone 3GS or later, iPod touch (3rd and 4th generation), iPad, or iPad 2; a Mac computer with OS X Lion; or a PC with Windows Vista or Windows 7 (Outlook 2007 or 2010 or an up-to-date browser is required for accessing email, contacts, and calendars). Some features require a Wi-Fi connection. Some features are not available in all countries. Access to some services is limited to 10 devices."

From here > http://www.apple.com/icloud/

Just a reminder:

Without iOS5, you can't have iCloud. You can still sync things that iCloud would sync though by following the instructions Blanzat Bob said.

Found a way to resync my Contacts (on another post in the forums) with my iPod Touch 2nd gen.

Open System Preferences to iCloud, uncheck Contacts (making sure you click "Keep a copy").

Connnect iPod and sync Contacts.

Unplug the iPod and recheck Contacts in iCloud preferences.

A wearisome workaround but I like the iCloud sync keeping my MacBook Air and iMac up to date.