A very quick point to add regarding the latest version of iphone os for iphone and ipod touch.

The chances of it installing first time, as an update, are extra-ordinarily low. You will likely end up doing a factory reset, like I am right now for my ipod touch. So you loose all your settings and any progress in any games you have installed, as well as all music/videos you've uploaded ad-hoc.

Unless you really must have the latest software update, I really *would not bother*.

And for the record, Itunes is an absolute piece of garbage for restoring. It keeps grabbing the window focus while I'm typing this.

Rakku