Error 1004 when upgrading to ipod touch 3.0

I recently bought my ipod touch 1st gen from a friend and have tried several times to download the 3.0 update. I even restored the ipod beforehand, tried several different credit cards, changed the Mrs to Ms on the information screen... It won't work. Why would it let me restore it with my AVG antivirus on but not let me upgrade it? Is it not basically doing the same thing only back-dating and not updating?

anyway I went ahead and disabled the AVG and turned my windows firewall completely off, and then re-entered my CC info, accepted the terms, and hit Buy, to no avail. Is there any way I can download something between 1.5 and 3.0? Maybe if it was partially updated it would accept the full newest update?

ipod touch 1st generation, 16gb, now fully restored to original specs
Dell Inspiron e1505 with Vista 32bit home premium, 40 gigs of free space.
All of my music is on my removable terrabyte, but it has had no problems uploading music previously.
iTunes 8.2.1

Help please!
I turned off my firewall, turned off AVG (all previous suggestions) and NOTHING. IF I try a different computer will I be able to re-sync to this one and keep the upgrade?

Message was edited by: xDisso1vex