Ipod Touch 3.0 Software Update finally worked!

A week ago (~27 June) an update to 3.0 hung. I bought, agreed to license, clicked 'OK' or something, but nothing happened, except my account was billed! A couple days later I viewed My Account, Purchases, clicked 'Problem' on the item '3.0 Update' or whatever. Next day my account had been credited my purchase price!
Wait a week, read some posts, pray, hope for better. Night of 7-July, tried purchase again. Approve license, etc., says may take 30 minutes or more on BroadBand, wait 45 minutes. Came back, checked synced iPod Touch, Settings, About, shows version 3.0! Check contacts, rotate Touch, see Landscape keyboard! Tried a Copy (as Cut & Paste), seemed to work!
Yeah! I guess Apple fixed something, or I got lucky this time!

Hello
I have an itouch 1st gen and went to try and update the software to the latest 3.0 update. I purchased the software and then itunes tried to update my itouch with the latest software.
By doing so this has caused my itouch to freeze and go into recovery mode which I havent been able to get out of after trying all that article ts1275 asked me to do. i.e reinstall itunes / try different pc / try different usb port / try to reboot itouch etc etc
I resorted to contacting tech support which was of no help as I already tried all that I could to get my itouch out of recovery mode. The other problem is that as I brought my itouch way back in 2007 my warranty is out of date and that means basically there not willing to do much to help. I explained that it was the software update that caused my itouch to crash and prior to the update it was working fine. There reply is that the software would not put my itouch in recovery mode and that it must be a hardware problem.
End result after spending 1hr 30mins on the phone is that I have booked in with tech support at an apple store and if found to be a hardware issue then I would have to pay £116 for an out of warranty replacement.
I think this is a joke and its to easy to put the blame on hardware issue when the device was working fine prior to software update.
Ps I would be happy to hear if anyone else has had the same problem so we can build a case against Apple for causing the problem

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