Trying to update iPT 2G from 2.2.1 to 4.0.2 but get error -1. Help?

Hi:)

I'm trying to revive an older 16gb iPod Touch 2G (it's an MB) for my friend's daughter. Every time I try to update through iTunes, it says "The iPod could not be restored. An unknown error has ocurred (-1)".

My friend confirmed that it was not "jailbroken". I have the latest version of iTunes. I completely wiped the iPod a week ago. It defaulted to iOS 2.2.1. I don't think it's a communication problem because I can "downgrade" it to iOS 2.2.

I'm not very techy and am pulling my hair out. We can't download any apps without the newer iOS:(

Please let me know if I'm missing any necessary info. Thanks in advance to anybody who can provide some direction with this issue.

peace-