The speaker on my ipod touch 3G is really bad?

when i turn up the volume the bass sounds really bad,, like distorted, but all the words (spoken words) sound good. also i have compared the sound quality to my sisters 2G and my bass sounds worst. and i only just bought the ipod like 2 days ago might the speaker inproove. ps the speaker sounds ok at maby 70% but playing a song at 100% sounds bad

The speaker was a worthless option IMO. How many people bought the touch to use the speaker full time? Look at the size of the iPod, it is obvious that a quality driver cannot be in there. If you are unhappy with it take it back and try another one.

The internal speaker is mostly designed for game playing, not music listening.

The 2nd gen and probably the 3rd gen touch have terrible sounding speakers, as noted above they are mostly there for game play not music.
It's obvious that it's distorting at the volume you are saying it sounds bad at.
I had a 1st gen touch with no internal speaker, so I bought this off of ebay:
Mini Dock Plug Speaker For Apple iPod Touch iTouch MP3 on eBay.ca (item 300344407294 end time 31-Dec-09 22:43:14 EST)
For the money it sounds pretty good, it's a lot louder then my brothers 2nd gen touch and much more clear sound. But keep in mind it's still just a small speaker.

The tiny speaker in the Ipod just can't reproduce bass sounds well at all.
I found the speaker sounds much better if you reduce the bass under settings-music-EQ- select OFF or bass reducer for EQ. Of course you will want to reset the EQ controls when you are using headphones.
I feel minimal bass sounds much better than horribly distorted bass.
Good Luck

My Itouch has lost its speaker, the ear phone jack works fine but no sound on the speaker its only about 8 months old. This is actually my third touch 16G to went bad within 30days this one operates fine, only the new problem with the speaker. Any suggestions

Take it to an apple store and see if they will fix or replace it.