So yeah, for those of you who don't know the iPhone 3G is released today, and with it the new iPhone (and iPod Touch) 2.0 firmware. But if you try to update through the iTunes Store it doesn't let you, so a workaround was found.
http://content.info.apple.com/ProtectedAsset/iPod/osx/bundles/061-4957.20080711.Fr43E/iPod1%2C1_2.0_5A347_Restore.ipsw
That is the new firmware, if you're having trouble downloading the firmware through iTunes then just download it from there. I might upload it on rapidshare or megaupload.
When it finishes downloading, go into iTunes, shift+click on "Update" or "Restore" (depending on which you want to do) and navigate to the file. Shazam!