How to fix Apple iPod Touch 3.1.2 firmware upgrade issue

Apple has recently released iPod Touch firmware upgrade 3.1.2. This upgrade is essential to test your iPhone/iPod apps. It may seem funny that 3.1.2 is a bug fix release. There seems to be a bug in the iTunes download progam or Apple servers which prevents this firmware upgrade. What is more irritating is the fact that Apple charges $4+ for this upgrade, yet you can’t install it!
The error is not uniform. Sometimes you get no error at all, but still the 3.1.2 is neither downloaded nor installed. Sometimes it gives a message “Unknown error 2020″. I tried upgrading iTunes and it turned out that it is the latest. I also tried resetting the iPod firmware. Interestingly the original firmware was downloaded without any issue which indicated that this may not be a download server issue. Finally I found a workaround quite accidentally.
There is a simple workaround to get 3.1.2 firmware installed on your iPod touch. Just download a free app from the Apple iTunes Store. This download somehow triggers the iPod touch upgrade download! Initially a 0.4KB file is downloaded which triggers the download of 240MB iPod touch software upgrade.
Problems like these remind me of the good old days when you can do upgrade to a device simply by downloading a file manually. If the file is available for download, it is guaranteed to work. For upgrade etc. iTunes should be made optional. They should give a alternate download location from where the upgrade can be dowloaded and directly moved to the iPod/iPhone.

What is new in iPod Touch 3.1.2 firmware?
3.1.2 firmware upgrade is a minor bug fix release. It contains fixes related to video streaming and sleep issues.