Q: I have a 1st generation iPod touch.  It will not let me connect to the iTunes store.  How can I fix this?

We were given this iPod touch from a friend.  Here is what I have done so far.  Reset it back to factor settings.  Added my music.  Set up the wifi through my home internet.  And it keeps telling me that it cannot connect to iTunes.  Don't know what else to do.  Have tried to look on this community for answers and haven't found ones that I haven't tried yet.  I did see somewhere where there was an update for the iPod touch.  It was 4.95 on the iTunes store.  Wondered if that might help.  Don't want to pay for something that won't work.  Thanks!