so you purchased the update, then did the recovery explained by Apple and it automatically discovered the update 2.1? Anyone knows why this happens just to some of us? Is it safe to do a recovery? I don't wanna have a bricked iPod, I'll rather keep my 2.0 as it is now ...
The above solution worked for me. I powered down my iPod, then powered it up while holding down the Home button.
This caused it to go into it's restore mode showing the "plug me in and set me up with iTunes graphic".
Then I set it up in iTunes and chose not to restore from iTunes backup. Once completed, the 2.1 update downloaded and installed perfectly. (The download was upwards of 200MB this time, instead of 0.4KB too)
it worked for me too! I was very insure about this, but i just crossed my fingers and did just the same!! There are tutorials about doing a recovery in YouTube and inside apple's site. Just be sure of doing a backup before trying it in case something goes wrong and also be sure that you are logged into your itunes account!
I did the restore in recovery mode but to my gr8 surprise,it downloaded 2.0.2 and not 2.1.Dunno wat to do,Should I retry in recovery mode or wait for another update?Usual update still tells to download itunes 8. Hope updated itunes will solve the problem. At least I moved from 2.0 to 2.0.2!lol By the way wats new in 2.1?
Last night I just uninstalled everything Apple and then re-installed iTunes and Quicktime. After fixing the Apple Device Manager (my iPod wouldn't show up in iTunes at all) and then re-installing iTunes, I finally got the upgrade to work. All in all, this took me about 3 hours to do and hopefully I won't have to do this again for the next iPod Touch update because it's ridiculous to go thru that many steps for something so simple as a software upgrade.
And, for those who wouldn't know, putting your iTouch in recovery is done by holding your home and sleep/awake button, when it shut downs keep holding the home button until you see 'connect to itunes' on your iPod, or, like I saw, wait until Windows notices some new hardware 'Ipod Recovery/DFU mode'.