$20 iPod Touch Upgrade Just Won't Go Away

Apple really wants $20 from you, or so it seems. Reports are sweeping the internet that iTunes won't take no for an answer when it asks you to buy the extra application pack for the iPod Touch.

The same thing has happened to me. Clicking the "No Thanks" button takes you to the store anyway, and leaves you there. The iPod is not accesible. It will show up in the right hand source list of iTunes, and can be right-clicked to sync it, but any other management features are disabled.

The fix? Disconnect from the internet. If iTunes can't contact the mothership, it will allow you to use your iPod Touch again. Those with quick mousing skills (or slow internet connections) can click the little x which appears in the iTunes status window and cancel the trip to the store. Apple is aware of the situation. Matt Sephton, a poster at the Apple Discussion Forums, got an email from Apple customer support:

Dear Matt,

I am sorry to hear that you're being continually asked to upgrade you iPod touch software. I understand that you would not like this upgrade and would like to stop the prompt.
Apple is currently working toward a resolution for the issue you have reported. You will receive an email after the matter has been investigated and further information is available.
Thank you for your patience. Apple wants your iTunes experience to be as enjoyable as possible.
Most sincerely,
MariessaiTunes Support Representative

"No Thanks" button for iPod touch upgrade now forces me to iTunes page [Apple]