Why is my 3rd generation iPod telling me I need to download iOS 5?
The 3G iPod can go as high as iOS 5.1.1. Yu can update if yo want. Sme feature like wifi sync and Messages require iOS 5. It is option but if you have to restore your iPod it will be update during the process.
iOS 5: Updating your device to iOS 5
Retrieving data ...