Upgrade from 2.0 to 2.1 on 32G  1st Gen Touch - Major Difficulties

I held my breath as I clicked on the update button and watched as Itunes downloaded all 239 MB of the 2.1 upgrade. 30 Seconds into the upgrade the message Unknown Error (13) can not install upgrade appears and the touch goes into Recovery mode and tries to do the upgrade again and fails.
I Grabbed the touch and headed for the laptop, downloaded the 2.1 software and breathed a sigh of relief when the touch went into recovery mode and when it was done I had the 2.1 OS installed, minus all of the music, movies and app's. I had backups of everything so that did not worry me.
Once today the touch disappeard from Itunes and froze the laptop. It gave me a blue screen error claiming Itunes had caused the fault. Probably has something todo with vista.
The real hassle is I can not get any of my mail accounts restored. I had an Imap and Pop3 setup that worked great before the 2.1 install.
I can setup a Gmail account, But the two work emails keeping failing the authentication no matter what i try. I checked with our IT guy and nothings has changed on our exchange server since Monday.
I'm stumped, dazed and confused
David in Miami

I'm determined to figure this out and I am making progress. My Gmail account works fine and I've managed to get incoming mail from our exchange server, via the imap port. The setup had the correct imap port but the server port was blank, once I filed that in, mail started to come into the touch. I think the outgoing server connection doesn't work because the advanced setup screen shows sent mailbox set to "On my Iphone" and It will no allow me to change that.
This all worked perfectly from the day I got the touch last February. Upgrading from 1.1.3 to 1.1.14 to 2.0 had no effect on this setup at all. I guess I was lucky until now

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