Thsnks, tried all those things no luck, I had to set up a new user account and restoer my touch to factory setting. I have deleted the update from my itunes folder and tried to download another (thought it may have been corrupted) now I am getting an error 5002 fromthe store. This is incredible that it takes so much just to update it.
If anyone has run into the same situation, I would apprecite the help in getting this updated
Windows XP service 3
Itunes 10 (latest update)
NO antivirus or spam run while updating
Just to give you an update, I got the iOS 3.1.3 installed (Even with the error messages 1602 & 1604). This is how I did it.
1. Turn off all spyware and antivirus
2. Open ITunes and purchase iOS and download (don't connect you ipod to the computer yet), don't select download and install. Close itunes after download.
3. My ipod was frozen with the connector and iTunes symbol in the screen, so I turned it off and with the usb plugged into the computer, hold the home button down (Puts it in recovery mode), now connect the end of the sync cord to the ipod, open iTunes and let it boot up. You should see the message that it found an ipod in recover and need to be restores. click ok and then select update.
4. This is where it will update and freeze again in restore. To continue update, leave the ipod connected (Don't touch it at all. Close iTunes and then reopen it. The connection should be made the the update should install.
It worked for me, maybe it will fro yo.