i only have a ipod touch and is it enough for me to test an app i have write for an iphone?
It's best to have both an iPhone and an iPod Touch for testing purpose. However, don't worry if you only own an iPod Touch. As long as you don't use iPhone-only functionalities (phone, SMS, etc), you're good. One bonus is that the iPod Touch is generally less powerful than an iPhone, therefore you know how well your app performs in a slow device.
As for the location-based service, iPod Touch uses WiFi to determine locations, so if you don't need GPS, you're good to go.