I installed the latest update when prompted this evening on my 3rd gen (I believe, purchased the christmas that just went), and so far it's been overing on:
"Step 1 of 2: Preparing update"
for nearly 2 hours. The progress bar is moving.. just very slowly. it's a tiny bit past halfway. Is it safe to assume it's going to take another 2 hours? What's it doing?
Apple's CDN ***** in Australia, I don't think I've ever seen a download faster than about 100k, but even then I can't imagine the firmware for this thing is that big. Thoughts?
If it's still progressing, you should leave it. (This has occured to a small number of people, it isn't likely to be related to your location)
Retrieving data ...