When the first time I connected iPod Touch to my PC, it opened in Restore/Recovery mode in iTunes(latest ver) and was asking for to restore it(See message. But restoring requires 160MB of software update over the internet. I am not on broadband.
Now why is it asking for an update? Is it kinda activation thing?
Restore mode is when the iPod is ready to get updated. Either you initiated the Restore mode somehow (usually pressing the Home and Sleep buttons together for 10secs or so), or the iPod software is corrupted and needs to be restored. If its the first case, just press and hold those two buttons together, and it will come out of the restore mode. If its the second case, you need to restore you iPod by downloading the update.
If you are close to an Apple store, just take it there and they will restore it for you.
