I just clicked the update button, it downloads the whole file then it says "itunes could not download the ipod upgade, make sure you are connected to your network". Obviously i'm connected to my network or you wouldn't be seeing this message. I find it odd how its downloading the whole 200mb (approx) file and then it says it can't download it. I am using a paid version of the 2.0 software aswell. Anyone else getting this/know a fix?