iTunes (v8.0.1) recognizes my iPod Touch 2G (16 Gb) as an iPhone. I don't know why, but it always says "iPhone sync complete", but has a picture of an iPod touch. I don't know if this will ever be an issue, but it does this constantly, but just started about 3 weeks ago. There was no software update or anything coinciding this, it just started. I believe that until it realizes that it is in fact an iPod, I will not be updating the software in any case. Does anyone know anything short of restoring to fix this?