I've had an iPod 80Gb for over a year now and felt it was time to delve into the "touch" world. Yesterday, I broke down and purchased a new 16Gb iPod Touch and last night I plugged it in, registered it online and synced it with my iTunes. At the end it popped up a message indicating that a new version on the firmware was available. I clicked on the upgrade button and an order page filled the screen indicating that for the low price of $9.95 I could have version 2!! I don't get this, I just paid $400 for a new unit and Apple wants another $9.95 to get it to the latest firmware! Even Microsoft isn't that cheap and allows new purchasers to upgrade free, even it the product was purchased within a month of a new version announcement! It's not the $9.95, it's the principal. If they don't want to recall their product (I don't blame them) there should at least be a certificate to allow for a free upgrade with the original receipt. Needless to say I'm returning the unit and I'll wait for the new version when it appears next month.