Errors 1602 and 1604 trying to update from 1.1.4 to 2.0!!!

Hi all.
So I have two iPod Touch devices in my home. I purchased and downloaded the 2.0 update this morning. It got halfway through the update and then died, leaving the iPod in recovery mode where the display shows the sync cable and the iTunes icon. At first it gave me the 1602 error, and every time I tried to Restore it, iTunes would think about it for several minutes and eventually give me a 1604 error.
After two hours on the phone with Apple support, I got it to work by plugging the iPod into a different USB port on my computer.
Updating the second iPod had similar difficulties, except I couldn't fix it by switching USB ports. Another call to Apple, and again no real solution. They had me go to another PC and try restoring and iTunes then downloaded the 1.1.4 firmware and installed it, although my iPod was now wiped.
I tried the 2.0 update on the new computer and now I'm right back to the 1604 error.
What the heck is going on?!? Two different computers and I can't update this thing.
It is NOT jailbroken or in any way modded - it was purchased brand new from Best Buy and has been treated like a baby its entire life.
I am desperate, frustrated, and exasperated.
Anyone, please, pretty please, oh please . . . can you help me?
Paul

Hello all, I have the same problem. It is very frustrating. I have a single iPod Touch and two USB ports. The following steps have been taken, starting with my OOTB 1.1.4 iPod Touch running Windows XP:
1. Upgrade iTunes to 7.7, purchase version 2.0 of software for $10 and attempt to install via iTunes - failed with Error 1602
2. Exited recovery mode (this process has to be completed after each failed attempt as otherwise I am stuck with the USB cable / connect to iTunes image on the Touch's screen), attempted to perform restore via iTunes, selecting 2.0 software as source - failed
3. Kicked out of recovery mode, attempted restore, selecting 1.1.4 software as source - failed
4. Uninstalled iTunes / Quicktime / Apple Mobile Device Support / Apple Software Updater as per WinXP instructions at http://support.apple.com/kb/HT1925?viewlocale=en_US. Repeated attempts above - failed
5. DID NOT kick out of recovery mode, closed iTunes, started iTunes again. Prompted with "Detected an iPod in recovery mode, must be restored before use" - clicked restore, selected 2.0 as source - failed
6. DID NOT kick out of recovery mode, closed iTunes, started iTunes again. Prompted with "Detected an iPod in recovery mode, must be restored before use" - clicked restore, selected 1.1.4 as source - failed
7. Did several of the above steps with nothing else connected to USB ports, and switching up the USB ports - failed
I seem to have exhausted all tips I have found online through Google and various forums, including the ridiculous instructions from Apple to just remove all Apple software and reinstall. What a waste of time. Anyway, the ONLY tip I have not attempted is to perform a restore / upgrade on a second computer - I don't have access to one at the moment and would like to solve this another way.
I am definitely open to more suggestions as I would really like to get 2.0 up and running. I mean - I paid for it and this Touch is only about 3 weeks old!

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Errors 1602 and 1604 trying to update from 1.1.4 to 2.0!!!

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