2.2.1 download timed out

I have tried three times to download and install the iPod software update 2.2.1 and have been unsuccessful. Each time the software downloads and the download appears complete (the circle with the arrows disappears, the horizontal bar marches up to 277.7 MB then disappears, etc). But then nothing happens. I wait and I wait (one time it was more than 30 minutes) and the install is not initiated even though my iPod touch is still connected and appears as a device. Then, if I click another item in the left hand panel of iTunes, I get an error message that the server timed out. When I close the error message window, the download selection disappears from the left hand panel and the file is no where to be found. When I click "Update" again on the Device menu, the download starts again from the very beginning.
Any advice to help me resolve this issue will be greatly appreciated. Thanks
Jim

I have the same problem. My "update" did not successfully install, so now I'm stuck w/ my ipod touch showing the cable to iTunes icon, but iTunes doesn't recognize it. I've tried reinstalling itunes, reinstalling the drivers, and following several other posts without success. Has anyone been able to resolve this?
My config:
Microsoft Windows XP Professional Service Pack 2 (Build 2600)
LENOVO 2007WHC
iTunes 8.0.2.20
QuickTime 7.6
FairPlay 1.1.11
CD Driver 2.0.7.5
CD Driver DLL 2.1.1.1
Apple Mobile Device 2.1.2.7
Bonjour 1.0.5.11 (118.5)
iTunes Serial Number C115045CBB25F167
Current user is an administrator.
The current local date and time is 2009-02-16 14:07:32.
iTunes is not running in safe mode.
Video Display Information
ATI Mobility Radeon X1300
** External Plug-ins Information **
No external plug-ins installed.
** iPod/iPhone Connectivity Tests **
iPodService 8.0.2.20 is currently running.
iTunesHelper 8.0.2.20 is currently running.
Apple Mobile Device service 2.12.33.0 is currently running.
Universal Serial Bus Controllers:
Intel(R) 82801G (ICH7 Family) USB Universal Host Controller - 27C8. Device is working properly.
Intel(R) 82801G (ICH7 Family) USB Universal Host Controller - 27C9. Device is working properly.
Intel(R) 82801G (ICH7 Family) USB Universal Host Controller - 27CA. Device is working properly.
Intel(R) 82801G (ICH7 Family) USB Universal Host Controller - 27CB. Device is working properly.
Intel(R) 82801G (ICH7 Family) USB2 Enhanced Host Controller - 27CC. Device is working properly.
No FireWire (IEEE 1394) Host Controller found.
Most Recent Device Not Currently Connected:
iPod touch running firmware version 2.2
Serial Number: 1B7489KHW4T
** iPhone/iPod Touch Sync Tests **
No iPhone or iPod found.

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