I don't blame you for being ****** about buying a so-called "3rd-Gen iPod" that turned out to have 2nd-Gen guts in it.
Apple should have been much more clear on what they were selling, but Apple is still confusing the issue today since they are still selling these 2nd-Gen iPods as a "previous generation" model, and TODAY the previous version is a 3rd-Gen iPod (since they are now selling 4th-Gen iPods):
"Refurbished iPod touch, 8GB (previous generation)"
http://store.apple.com/us/product/FC086LL/A?mco=MTkyNzE2MDI
Apple, do the right thing and issue some credit vouchers for the people who unfairly bought this older crap!
At least, change your dang web site to clearly tell consumers that you are selling them older 2nd-Gen iPods that can't run IOS-4!
Ken