I have an iPod touch 32gb 3rd gen (model A1318) and am unable to update it to iOS5.  When I try, I have to update iTunes first, and when I do that, it will no longer recognize my iPod (so I can't update the iOS).  Help?

If it matters, I'm using a PC that's still running Windows XP, but this isn't my first rodeo, and I know both how to use the software and what applications are and aren't compatible with my computer. 
I searched the web for answers, most of which amounted to a shrug and a "Meh."  I called Apple support, who took a couple days to look into it, then had a supervisor call me back.  His response, essentially, was a shrug and a "meh."  So I'm kinda stuck.  Any help you folks could give me would be much appreciated. 
In addition, I've been reading a fair amount on how iOS 5 will cause a whole host of problems with the 32gb 3rd gen touch... is this true?  And has Apple resolved it, or are they essentially force-retiring this model?

Dear Re_trace,
Don't you feel cheated and conned by this product. I am 50 years old and from what you write I can see you know a lot more about your computer than I do about mine. Additionally I live in southern Africa (in fact I live in one and work in another, neither of which appear on the drop down list when you start looking at asking Apple directly for help) and feel they shouldn't allow people to sell their products here (I bought it in a shop that sells i-Macs etc. - not off a guy on a street corner!)if they can't offer support.
I have just been going from error code to another, losing my music that took me hours and hours to install and catalogue/modify in the library etc. and now I've had enough of it.
Essentially it seems to me we have bought faulty products, and made Apple richer than Microsoft in the process.
I'm turningmy back on this bloody iPod Touch, giving it to my son to see if he has the ability and interest to get it working, and if he hasn't I'm just goinbg to have to sell it to a sucker who also wants to buy into the dream, until he wakes up to the reality of shoddy product. hours in front of a computer screen, a fortune in downloads (here I only have about 5 to 10 kb per second download speed), trawling the internet looking for people than have also suffered at the hands of an obviously fatally-flawed system.where every time Apple just recommends to install the latest version of iTunes.
I for one would rather have my money and my wasted time back............
I know I didn't help, but really I don't have any axe to grind against Apple, it's just that the hype in no way lives up to the reality. Look at all the people begging for anwers to their problems on this web-site! I know the shop in Mozambique won't give me my money back, but Apple should, and if Ford sold cars as reliable as these iPods, they'd be banned from selling them........
Or am I just too old to realie how exciting it is internettingf all over th eplace to try to fix what is actually an inferior Walkman........
Good luck solving your problem, and I hope you think that all the effort you are putting in (and which I have now given up putting in), is worth it.
Hope you solve ht eproblems!
Nick

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