I just updated my iPhone OS to 3.1, not 3.1.1. Also, if you already have OS 3.0 on your Touch, it's free to update to 3.1. If you have anything below 3.0, 5 bucks to upgrade. The dozens and dozens of Zune fans or competing MP3 players don't have to pay for updates because in general, places where people buy music for those tend to have suscriptions to Rhapsody or the Zune Marketplace. Yes I know Amazon doesn't offer suscriptions, but they also don't sell MP3 players under their name. Regardless, if you don't want to pay anything, don't buy the hardware. There are plenty of others who will buy an iPod this Christmas season. Yes that's right, I said Christmas. None of that political correctness crap by calling it holiday season.