ITunes 8/Update 2.1 wiped out my iPod Touch - Can't even restore

I've been running iTunes 8 for a couple of days and when the 2.1 update popped up I automatically clicked OK - Apparently that was a mistake. 20 minutes later I was informed that the update failed due to an unknown error. It also locked up the iPod to the point that I had to do a complete reset, but then when trying to restore the iPod the same issue happens again. Does anyone know if there is an issue with iTunes 8 (Mac)/update 2.1 that's causing this?
Luckily, I also have a PC, where I know there's an issue with iTunes 8, so I declined the update and was able to restore my iPod using iTuens 7.7.1.11 for PC. However, most of my media and apps are on my Mac, so this is only a temporary solution.

64-bit XP is the clue, Katrina. A bunch of the 64-bit XP Orca-based workarounds out on the web don't work for 9.0.x, because of the way the iPod Service and AMDS have gone 64-bit in the 9.0.x versions. So those folks will often try installing an 8.x instead.
(It's been weeks since I last checked ... so I'm not sure if there are any newer versions of the workarounds available.)

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