Itouch 2nd generation+update ios 4= FROZEN

this is a brand new itouch..i plugged it in itunes it recognized it..it was fine until itunes opt to update to ios 4..28 mins to dwnld and now my itouch is completely frozen with the usb and itunes on screen..I did every trick of the trade; a hard reset and updating my windows and now my pc is asking for a driver software disk and itunes isn't picking up my itouch...sooo maybe I shouldn't have updated it in the first place..help!!

I realize that it is the constant upgraded technology that makes the previous obsolete. Even though the app developers may be to blame, I still blame Apple as a whole. I bought my iPod when it was new and now that they have something better, I feel they are doing a poor job at keeping customers with technology only made a couple years ago happy. Those who snicker at this now will understand in a year or so when the iPod Touch 6th generation comes out.
This can all be solved easily if they would just release something that would sort updates in the 'App Store' based on the generation of the iPod Touch being used by the user. (Hint, hint, Apple)
Since that's way to easy to solve, it probably won't happen. So this then begs the question:
(This is also the TL;DR part) Is there still no workaround? If not, is there some way I can trade in my old iPod Touch for a discount or something on a newer one? Because they have by no means lost a user. They have just made a user very unhappy at the moment.

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