Found this while surfing for the latest updates on the iPod Touch.
"pastebud enables round-trip copy and paste on your iPhone or iPod Touch, between the two applications that matter the most: Mail and Safari. And through a clever combination of web services and bookmarklets, it does it without requiring a jailbreak or App Store download."
No jailbreak, no app download. pastebud has its limitations, but it serves simple copy-paste needs. When oh when will Apple give us true inter-app copy-pasting?
For instructions on how to use it, visit pastebud.com.