An error occuried while backing up this iPod (-1303)

Apple technology...such greach devices when working, but such an unpleasent experience updatinging. XP After waiting hours for iOS 4 to download, I finally try to update my 4th generation iPod Touch, and after waiting a long time for it to back up, I'm greated with a error message saying: "An error occuried while backing up this iPod (-1303). Would you like to continue to update this iPod?" Well, my answer is no, ofcourse. I'm not willing to have my data erased like last time, when I updated my 2nd gen iPod Touch to iOS 4. Why does upgrading to each major iOS update have to be so PAINFUL? Anyways, my question is: Will Apple fix this, or not? Because right now my friend is gloating how he has an Andriod phone, and if saying "If Apple is such a great company, why does it fail at updating it's own mobile OS on it's own devices?" And frankly, I can't argue with him, since well...my iPod isn't upgrading. Anyone have an idea when Apple is gonna fix this, or what i should do to update my iPod Touch to iOS 5, without loosing any of my data?