I downloaded the newest version of iTunes because it said it couldn't update the iPod Touch to 4.2 without it, but after the download I went to update my iPod Touch and iTunes said it couldn't contact the update server. This happened when I downloaded iTunes 9 and tried to update, but I never fixed it. Any help would be appreciated!
Is there a error number associated with this error?
Did you check to see if you have an internet connection?
Did you restart your computer?
Did you wait a while and try back later? Apple could be experiencing a downtime when you tried to access their server.
Do you have a firewall on? Is the port open for iTunes?
It could be any number of things...Let me know if this helps!
Would be helpful in narrowing down the cause:
Things that come to mind off-hand:
Worst case: Use the links from this page, or a page like this, to download the image for the new OS manually and perform a backup-and-restore using the image. WARNING: Not for novices!