I had this problem when I first got my iPod Touch..

And it's still an issue..

I plug in my iPod, and iTunes tells me that there's a new software version available! Yay!



But then I click "Update", and it tells me that my iTunes is up to date?

Two comments:
1 - My iTunes isn't up to date. I should be on 10, but because of the OS for my Mac that I'm running, I can't go to 10.
2 - Why when I click update for the iOS, does it resort to lying to my about my iTunes?

I can't remember how I did it when I first got the device.. I remember calling the Apple store and they told me my iPod might have come with a problem on it.. But I ended up getting it to work.

This is annoying.

Dear Apple, I'm tired of having a love/hate relationship with you.