Q: I have an older version of the ipod touch and am trying to update it but it wont update past v.4.2.1 which is not compatable with most apps today?  can anyone help please

Correct, the 2nd generation iPod Touch can not be upgraded beyond 4.2.1.

You can always look for the vintage iOS apps requiring 4.2.1 or earlier.

IBe sure to keep your App library backed up.

There are actually a lot of games and other apps which are compatible with devices running iOS 4.2.1. You just need a tool to separate them from the incompatible apps.

Here is my favorite solution:

iOSSearch - search the iTunes store for compatible apps.

And here are some things other people have suggested:

Vintapps 3.1.3 - paid app.

Apple Club - filter apps by iOS version.