pwiles1968:manicm:I have the 3rd gen iPod touch 64gb, and have the latest iOS 4.02, along with iTunes 10. This will now be the last update I ever do to either.
David give it a go.
If you ever dock it to anything I highly recommend you update to 4.1 or 4.2 when they are released. iOS4.0* has a lot of issues with docking and being controlled by and accessory browsing an iTouch, iPhone 3 and 3GS from an accessory is very poor.
Yeah updated to latest version of iOS 4, but no problems with my iTouch with rDock yet.