Are you sure you have a 3rd generation iPod Touch?
Or do you have a 2nd generation iPod Touch 8GB?
Look at the back of your iPod Touch for these numbers. Don't bother looking on the box but the back of the iPod Touch itself....
Which number do you have?
iPod Touch 1st generation - A1213
iPod Touch 2nd generation - A1288
iPod Touch 3rd generation - A1318
iPod Touch 4th generation - A1367
I have the same problem - and same disappointment - as ffiltar. I thought my first Touch was 3G, but model # is A1288. I guess that's why I had so much trouble updating it to iOS 4.0. Even the Genius Bar didn't check the model # when I came in with my update problem. Their suggestion DID work, however: "Reset," then restore apps & settings from backup. (Now running iOS 4.2.1).
At least my new Touch is really a 4G. I checked and it's an A1367 (updated to 4.3.1 with no problem).
Thanks for the information!
I've got one of those models listed A1288. I thought it was a 3g too, but according to you its obviously not. Its started playing up now doing silly things with its apps and skipping songs, and after numerous times restarting it and restoring it and now I've discovered its not even possible to upgrade it, I think its time to buy the new one. Went elsewhere to buy it though, wasn't going to pay £190 for the 8gb one.