IPod Touch 4th Generation Update problem

For the past few days, I have been trying to install the latest iOS update on my iPod Touch, but every time iTunes says that this device is not eligible for an update.  I have also notice that the time and date on my iPod keeps auto setting its self to December 21, 1969, so I reset the date and time, but always get the same result. 
I also tried to restore the iPod and yet nothing works.  This device has NEVER been jailbroken and I do not intend on doing so.  If you have any suggestions, I would really appreciate it!
Thank you,
Michael N.

Michael,
The first thing I would do is update to the latest version of iTunes.  If that doesn't help, try downloading a new copy of the iPod's firmware.
For the date and time issue, head to Settings -> General -> International and make sure the Calendar setting is to Gregorian.
B-rock

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