Heres how to update iPod Touch to Firmware 2.0 for free, you will only need to follow these simple steps. In this way you not need to pay $9.25 just to upgrade your iPod touch. I will also be giving you more update to other firmware releases so stay tuned.

How to Update iPod Touch to Firmware 2.0 for Free

1. Download iTunes 7.7 from Here.
2. Hold Shift and click Restore.
3. Select iPod1,1_2.0_5A347_Restore.ipsw
4. Enjoy!

The iPod1,1_2.0_5A347_Restore.ipsw firmware can be downloaded from any of the mirrors below. It is the complete stable and final iPod Touch Firmware 2.0 (5A347) and has been checked and tested.

Rapidshare mirror (Join parts using this software)

http://tinyurl.com/ipodtouch-firmware-2-part1
http://tinyurl.com/ipodtouch-firmware-2-part2
http://tinyurl.com/ipodtouch-firmware-2-part3

Uploaded.to mirror

http://uploaded.to/file/ih0z65/iPod1,1_2.0_5A347_Restore.ipsw

Freakshare mirror

http://freakshare.net/files/30208/iPod11_2.0_5A347_Restore.ipsw

Once you download the firmware locally on your PC, follow the steps above to update iPod Touch to Firmware 2.0.