Are you referring to connecting with a PW?
I run Ubuntu 12.04 and have had no problems with the Kindle Touch. Though I don't really know what you mean when you ask whether it "works" with Linux, as there isn't much that they do with each other. Linux just recognizes it as a USB client.
When plugged in, I can browse my KT directory. I can run the Calibre ebook manager/converter with it too, and use the 'send to ereader' option in the program.