IPod Touch 8GB Second Generation Unable to Upgrade to 3.0

Hi,
I recently purchased the abovementioned iPod Touch. It's a 2.2.1 OS version.
The problem that I have is that I am actually able to download the 3.0 software update from iTunes but it won't install. I have downloaded the update twice. Will Apple charge me twice as well? I do not want to keep trying until I am certain Apple won't charge me every time I try to download and install the update. Please tell me how to install it properly through iTunes. iTunes sends an error pop-up on my computer screen (Win XP) just when it should begin installing the update or whatever it should do after download completion.
Thanks.

I am having the exact same problem with my itouch 16GB! I called apple support and was told that sometimes this problem happens when the computer is not hardwired into the internet but I did try that and it didn't help. I keep recieving a message that states that the file is "invalid or too long". Any suggestions??

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