MODEL MB533LL 30GB IPOD version 2.2.1 (5H11a)
Can this version be updated to the most recent IOS 4.? I purchased a bluetooth adapter, but no "bluetooth" option in my settings. Please help! Thx in advance!
If your iPod Touch has iOS 4.2.1 on it, that suggests that it is 2nd generation model, which does have Bluetooth. You should find it in Settings/General>Bluetooth.
It's an older version of Bluetooth, which should work with basic Bluetooth speakers and adaptors, but may not work with the more complex types of speaker. The Bluetooth is for audio only, you cannot use it to transfer files.
Once your iPod is at iOS 4.2.1 that's it, there are no further updates for it.