an 8 gb iPod touch without a camera is not a 3rd generation iPod touch..If your friend 8GB iPod Touch "3G," he/she really have a 2G, which cannot natively have home-screen wallpapers. Otherwise, you can find this in Settings --> Wallpapers.
If the iPod Touch is jailbroken, purchase the package called "Features" from Cydia. This will allow you to unlock the features that are locked for the older generation devices, like multi-tasking, home-screen wallpapers, and Game Center. You can choose which ones to enable through Winterboard.
I hope this helps!
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