Trying to upgrade iPod touch firmware to 3.1.2, getting errors

My iPod touch's (2nd gen) firmware is currently 2.2.1. When I tried to update to 3.1.2 in iTunes (Devices>Summary tab), nothing happens.
When I go to the green "Downloads" folder I noticed pending downloads (says "5 iTunes Downloads Available" on the bottom, but no progress bar on the list. And here's the thing, when I click it to resume I get "Unable to check for available downloads. An unknown error occured (2020)."
I'm assuming those pending downloads are the firmware update, because everytime I try an update (in Devices>Summary tab) the # of pending downloads go up.
1) I cannot update my iPod touch
2) I have pending downloads I cannot clear out of iTunes
3) I have tried reinstalling iTunes, 1 & 2 above still occurs
What is the solution?

I wouldn't sweat it about the refurb iPod. I have the niggling feeling that it's a problem that Apple is having on their end via the iTunes store, and not a problem with individual iPod units (since the only thing that iTunes does with your iPod in order to download the update is detect its serial number). Hopefully the matter will clear itself up in the next few days, especially if so many people are having problems with the update.
I got my iPod free in Apple's back-to-school bundle way ago in September, and I just haven't bothered updating it until now. In fact I only took it out of the box last night. PLUS I have no security software to disable, since I'm using a MacBook. Still waiting for a solution...

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