Can't install iPhone 2.0 Software Update for iPod touch

I am trying to download the iPhone 2.0 Software Update for iPod touch from http://www.apple.com/ipodtouch/whatsnew.html so I can download apps for my new iPod touch. (Although it is pretty bogus that I should have to pay $10 for an upgrade on a brand new device so that I have the privilege to buy apps). I have iTunes 7.7 already installed.
When I click on the link https://phobos.apple.com/WebObjects/MZFinance.woa/wa/touchLandingPage , I do not get a download, and iTunes does not open. Nothing happens if I open iTunes before trying this link either.
Instead, I get a brief page which says "One Momemt Please". Connecting to the iTunes Store. Loading... If iTunes doen't open, click the iTunes application in your Doc or Windows Task Bar" , then my browser is redirected to http://www.apple.com/itunes/affiliates/download/?itmsUrl=itmss%3A%2F%2Fphobos.ap ple.com%2FWebObjects%2FMZFinance.woa%2Fwa%2FtouchLandingPage%3Fign-mscache%3D1 which tells me to download iTunes... but I already have iTunes installed.
I installed (then uninstalled, reinstalled) the latest iTunes (7.7.0.43) and the problem persists. iTunes works fine for all other uses.
I have the problem with both Firefox (3.0) and Internet Explorer (6)
How can I download and install The iPhone 2.0 Software Update for iPod touch directly from iTunes? I cannot find it when I search for it. It is not listed in the App store.
(P.S. The web support form does not work when I tried to fill out a problem report for "Connection" issues. Although I filled in all form fields, it would not send the report, telling me I did not fill in a field.)

The upgrade now appears directly in iTunes, so I do not need to access it from the web page. I see many others are encountering problems installing the upgrade, so I'll see how it goes...
There is no answer to the initial problem that iTunes install does not configure the browsers to handle the itmss:// protocol.
I still think Apple should not charge for this for a brand new iPod purchased just this week.

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