I have an Ipod Touch version 1.1.5. How do I upgrade?

I don't mind to pay, but I can't find even that option! My iTunes says my ipod touch is up-to-date and doesn't give me any other option to upgrade, rather than simply update. Help!

Here is where you get the paid update:
Purchasing iOS 3.1 Software Update for iPod touch (1st generation)
If you get a 8288 error, there is not solution yet that I know of. 

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