So many people are having problems with this... I find it hard to believe that so many people (some die-hard mac fans!) are simply having these problems because they can't follow instructions. I've had problems myself. I think the whole thing has been badly planned and poorly executed. First it should be made explicitly clear that iTunes 7.6 is needed, and that 1.1.3 should be installed before the Apps upgrade. Apple could have simply not allowed the iPod touch to be updated to 1.1.3 before iT 7.6 was installed - I believe this would have avoided the problems many people are experiencing. 