Has anyone bought an ipod touch in Kunming? Where would you recommend buying one to know it's not a fake? Would you say it's fine to buy one here or better to buy one in the States?

Better to buy in the States. It will be much cheaper.

If you can't wait though there are a few places where you can get the real thing for sure (There's even an Apple store near jingmafang)

The price differential won't be all that big, actually, but they definitely won't have the newest ones for a while, at least at the official store.

Don't be too worried about getting a fake, they're pretty obvious. Just play around with one you know is real before you head out to buy. You can save a bit of money by going to a non-official shop. There you can buy one smuggled in from Hong Kong without the import duty. The only drawback is you'll have to take it to Hong Kong for any warranty service. My strategy for buying gadgets in China is to check out local dealers on Taobao, and then head to the physical location of the vendor with the highest rating (and competitive pricing).

BTW, Apple only has two official stores in all of China, one in Beijing and one in Shanghai. There is an authorized distributor in Kunming though, with shops all over the place.