iTunes not responding while Firmware upgrade

Question

I am trying to update ipod touch into Version3.0 firmware.

But after a 277 MB download, my iTunes has hanged saying "Preparing iPod for restore"

How do i not brick my ipod and upgrade successfully,

Also, where is the downloaded file stored. Preferably, I dont want to download that file again.

Answer 1

If the download was successful you will find the file in

C:\users[yourusername]\AppData\Roaming\Apple Computer\iTunes\iPhone Software Updates

Once connected to iTunes hold Shift while clicking on Restore and it will allow you to browse for the local file.