Any idea why my new old ipod touch won't update past version 2.1.2?

Factual Questions
1

A friend of my wife offered her her old ipod touch. My wife, however, had just recieved a free 4th gen ipod touch for having opened up a bank account at the right place at the right time. So the old used one went to me instead.

I’ve identified it as a first generation ipod touch.

When I plug it into itunes, though, it says it’s got “software version 2.1.2” installed. Elsewhere online, though, I see that first generation ipod touches have a version in the 3.'s as their latest update.

When I tell itunes to update the 1st gen ipod touch, it insists the thing is fully updated.

Any idea what I’m missing here?

After typing the above I checked and I see that the ipod is almost completely full. Is it possible once I get rid of wife’s friend’s music the freed up space will allow the OS to be updated?

(Will it really make much of a difference if I update the OS anyway?)

Also, is there a way for me to grab some of wife’s friend’s music off this thing before clearing everything out of it? Or are things arranged somehow such that once I have the ipod touch linked to my own account information there’ll be no way to access any of the music that was purchased under her account?

2

This link seems to indicate that it’s a paid upgrade.

You might try the Genius bar if you have an Apple store nearby, or just ring them.

For getting music off it, Google for Senuti .

3

Here’s the guide I used to update the iPod Touch firmware for free.

4

Before you connect the thing to itunes do this:

http://www.metaphoriclabs.com/articles/5-ways-to-copy-music-off-your-ipod-windows-mac-os-x/