Q: software wont update past 4.1 on ipod touch 4th generation any ideas?

Are you sure you have iTunes 11.0.2?

Update Server

Try:

- Powering off and then back on your router.

- iTunes for Windows: iTunes cannot contact the iPhone, iPad, or iPod software update server

- Change the DNS to either Google's or Open DNS servers

Public DNS — Google Developers

OpenDNS IP Addresses

- Try on another computer/network

- Wait if it is an Apple problem