I am running itunes on pc. itunes 7 installed no problems but my nano wouldn't update from 1.11 to 1.2 because it said that the firmware file was corrupted. Wouldn't let me restore for the same reason. uninstalled, re-installed original ipod software that came with my nano and was able to restore to ver 1.0. Re-installed itunes 7, same problem updating firmware. Manually reformatted ipod, scanned it, ran checkdisk, same problem. Anyone else having problems with the update?