Update: I installed the update at about 8 am this morning (July 12), using iTunes, and it went very smoothly. The download is about 222MB. I have tried out several applications, and am very impressed with the upgrade. I have updated my popular iPod Touch as a PDA post, to discuss one of the new applications. I will also write a new post on the Touch within the next couple of days, after accumulating some additional screen shots and doing additional testing.
Original post (from evening of Friday July 11):
You have probably heard about the problems with iPhone 2.0 activation today, and there have also been problems with purchasing and installing the 2.0 firmware for the iPod Touch.
I have trying to upgrade my Touch software since yesterday. When I would hit the “Check for Update” box in my iTunes panel for the Touch, it would show that 2.0 is the latest firmware available. Then, after clicking “Learn More” button in the message, I was told to try back later.
Some organizations (Fox News, for example) have reported that the problem with activation was due to a massive iTunes server outage. I have been told that this has been fixed, yet now whenever I click the “Check for Update” button, here’s what I get:

This is very frustrating. I want to update my Touch so I can do a follow-up to my popular iPod Touch as a PDA article.
Do any of you have any ideas on how I get past this and get the upgrade? I have also tried using the “Buy the Update” link at the Apple site, but all it does is transfer me back to iTunes, which just sets there doing nothing. As I mentioned in yesterday’s post, I have upgraded to iTunes 7.7 … really strange to me that it would tell me for a while that 2.0 is available, when it wasn’t, and now that 2.0 is supposedly available, it doesn’t tell me about it. Duh.
BTW, I don’t know whether to be PO’d at the Apple folks right now, or to feel sorry for them. I suppose I feel some of both. I do know they are trying hard to get all of this resolved, and I imagine some of them are going to have crappy weekends.