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Do not link to iphone/ipod touch restoration files unless its an official Apple link. No hacked firmwares allowed so DO NOT ASK FOR THEM OR POST LINKS TO THEM.
Back to a 32 giger eh?? Man.... thats a lot of cash...... anywho, if you need any help, I'll be home all day. I might be outside at some point to slice and dice some weeds, but I'll be here.
Yeah, try not updating to the latest installer app first. Try installing the SUID LIB fix first, then totally reboot the ipod and then try to update the installer app and see if it locks up.