connect your iPod to iTunes on a computer and update from there.
See this article: http://support.apple.com/kb/ht4623 and scroll down to the part about updating with iTunes
Please note that
iPod touch 1st generation only goes up to 3.1.3
iPod touch 2nd generation only goes up to 4.2.1
iPod touch 3rd generation only goes up to 5.1.1
4th and 5th generation both go up to iOS 6.1.3, wich is the current latest version.
Hope this helps,
Message was edited by: jesterwylde
You may have a 2G iPod. Those can only go to iOS 4.2.1. The 2G and 3G look the same on the outside except for for the model numbr on the back
iPod touch (3rd generation)
iPod touch (3rd generation) features a 3.5-inch (diagonal) widescreen multi-touch display and 32 GB or 64 GB flash drive. You can browse the web with Safari and watch YouTube videos with Wi-Fi. You can also search, preview, and buy songs from the iTunes Wi-Fi Music Store on iPod touch.
The iPod touch (3rd generation) can be distinguished from iPod touch (2nd generation) by looking at the back of the device. In the text below the engraving, look for the model number. iPod touch (2nd generation) is model A1288, and iPod touch (3rd generation) is model A1318.