My ipod touch shows 6.83 gb in memory rather than 8 gb. Why is this happening and how can i fix this problem? I have my ipod touch restored to factory settings.

The overall capacity is supposed to be 8 gb, but on itunes it show much less storage space. What is the Reason????

Most of the difference is taken up by the operating system and s thus not availabe to the users.  The remainder is how GB is advertised and how it is uses.  See:
http://support.apple.com/kb/TS2419

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