New iTouch is outdated already??

I just (July 13) purchased an iTouch at my warehouse. When I connected to the Apple iTunes to use an application (AP news), it told me that my operating system was old and I needed to upgrade to the new operating system for the price of $9.95, for the application to work. I just bought it!
When I purchased this iPod I understood it was the latest version and it appears to be outdated. Is there a provision to upgrade the os software for new purchasers? Otherwise I will return the unit to the store and wait for newer units to appear. Seems there should be a provision for new purchasers to have access to the latest OS when they buy a new iTouch.

Your 2G touch will continue to work just fine with OS 2.2.1 that you have - that's the shipping version supplied with 2G touches. If you look around the forum you will see several message threads devoted to this topic (paying for the 3.0 OS software) and not much is to be gained by rehashing everything again.
Upgrading to OS 3.0 is optional and NOT required. (In fact, some people on the forum might suggest you NOT upgrade to the .0 version because of the problems some people are having with it. I have NOT had any problems with 3.0 myself.)

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