Ugh. I updated my iPhone 3g to IoS 4 - no problems. We updated my wifes iPod Touch 3g to IoS 4 - the thing produces an error indicating that the backup on her iMac is corrupted and cannot be applied. EH? Then it goes into an endless loop where it tries to restore her data for an extremely long period of time, fails, and recycles again. Highly irritating. Any ideas?