iPod Summary Tab (update and restore) not working

Anyone have an issue with their iPod saying it cannot update or restore because "you're not connected to the internet"? I would like to update the iPod software on my 5th generation(read that I could) to iPod Updater 1.2 but whenever I click on "update" or even "restore", I get the error message that I'm not connected to the internet and can't be updated. I'm also having the issue with album art, only about 1/4 has been downloaded, the rest are all blank.