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I've had no success updating my wife's new 1st generation iPod touch to software version 2.2 - it won't download the update after paying for it. Anyone else had success? Considering there are over 100 messages on the Apple Support forum, and 5000 message views in the last 24 hours, I guess this is a common problem.
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Just wait. Apple will have to fix it if there are that many people having problems.
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I had no problem. I bought it when 2.0 came out then itunes upgraded it to 2.2 later.
If you have an Apple store near you, I would try there.
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Restart your iPod, quit and relaunch iTunes, then try again.
(Did you jailbreak your iPod?)
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Apple fixed their server, and I was able to successfully download and install the latest iPod Touch software today- well worth $10. For anyone else - better do it TODAY before Walmart starts selling iPhones on Sunday!