Thanks To Mr.Brandon

1. Download and install iTunes 8.2 or higher version.
2. Download iPod Touch 2G OS firmware 3.0 Apple Device Software Update IPSW file, iPod2,1_3.0_7A341_Restore.ipsw .

Note: If the downloaded file is in ZIP format (iPod2,1_3.0_7A341_Restore.zip) , then rename the extension from .zip to .ipsw. If the file name is been appended with .zip extension, such as iPod2,1_3.0_7A341_Restore.ipsw.zip, just remove the .zip off the filename.

If you encounter “an error occurred while processing your request” error message when attempting to download iPod Touch firmware, download the IPSW files from here (for 1st generation iPod Touch) or here (for 2nd generation iPod Touch).

3. Plug in and connect the iPod Touch to computer.

4. Run iTunes 8.2 or higher.

5. Select the iPod Touch from Devices list.

6. Optional but recommended, take a backup of the iPod in case of accidental file lost.

7. Now there are two ways to update iPod Touch. For user who want to clean and fresh upgrade the iPod Touch, without retaining any existing songs, musics, videos, movies, apps and other     media or data files on iPod Touch (mean you will be losing all files stored on iPod Touch), follows these steps:

In Windows environment, press and hold Shift key and left click Restore.

In Mac OS X system, press and hold Option key and left click Restore.

For user who want to retain and save everything that has been uploaded and stored on iPod Touch or ensure that the media is untouched (not losing any files), follow these steps instead:

1. On the iTunes main screen, there should be 2 options: “Check for update” and “Restore”. Click on Check for update.
2. A web page showing the iPod Touch OS firmware 3.0 features and offering option to buy for $9.99 will be loaded and shown. Click on Cancel.
3. iTunes will return to the previous iPod Touch main page. However, the “Check for update” option has now been change to “Update.
4. In Windows environment, press and hold Shift key and left click Update.
5. In Mac OS X system, press and hold Option key and left click Update.
6. Locate and select iPod Touch OS 3.0 Apple Device Software Update IPSW file downloaded in step above.
7. The update process will start. iPod may reboot a few times. Do not disconnect iPod Touch until iTunes has completed updating iPod Touch.
8. Once upgrading is done, the iPod Touch will be on OS firmware 3.0, for free without any cent been paid.
9. Optionally, if you have choose to restore iPod Tunes to firmware OS software 3.0 at factory default, iTunes will offer option to either create a new iPod or restore it from backup. For user already created a backup of iPod, just restore the date files to upgraded iPod Touch.

Note: If there is an error when iTunes attempts to recognize iPod Touch, just unplug and plug the iPod back in again.