Visit Apple's web page for the iPod Touch Software Update. (Find a direct link in the Resources section.) Select the "Update Now" button. This will open up the related iTunes Store page within iTunes.
Purchase the software update. Enter your Apple ID information and credit card information as prompted. The upgrade will cost roughly $5 USD. After purchasing, the firmware will begin downloading.
Connect your iPod Touch after the firmware has downloaded. ITunes will inform you of the available update software and ask if you would like upgrade your device, say yes. ITunes will then go through the process of installing the new firmware onto your iPod.
Apple has made many improvements to the software running on the iPhone and iPod Touch since their debut in 2007. Unfortunately for iPod Touch owners, each incremental upgrade to the software comes at a cost. This cost (or simply lack of knowledge) has put off many owners from upgrading and enjoying the full potential of the device and all the applications that extend the functionality of the iPod. Apple has lowered the price of upgrading to just under $5, and getting the App Store on your iPod is more affordable than ever.
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