Many people who do not want to pay the $20 upgrade for the 5 new can not get rid of the reminder screen when they plug in the device. Apparently, the No Thanks screen will only come up after a few times connecting. Also many people report a worse problem, when connecting the iPod Touch into their computer and click “No Thanks” iTunes music store become unavailable and their iPod does not show up in the source list to the right.

An angry customer wrote a complaint to iTunes customer service and his letter follows…

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,
Mariessai Tunes Support Representative

Infinite Loop: The iPod Touch upgrade won’t die
[Via cnettv.com]