As an update, I sold the 1st gen iTouch, and scored a 3rd gen one locally.
Now I have Edovia's Touchpad up and running, and acting as the wireless keyboard and mouse.
There was some fun diagnosing why when I unplugged the USB mouse and keyboard the mini went on the hunt for a Bluetooth device replacement, but Google sorted that out for me, and I have updated the Bluetooth preferences to overlook the lack of an input device.
Now I need to move the Mini to where ethernet can reach it, so that Touchpad can wake it from Sleep mode.
Then, I should be fully operational.
I will then add the Mac version of the Squeezebox s/w, and have the mini run my main music system downstairs, and be my surfing machine upstairs.