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Hey, I am having this issue as well and am also located in Australia.
I'm wondering if its possible this update issue is a cause of going from a much earlier firmware version. I believe I was at 1.9.14 before I tried to update mine to 2.0 and when I did a factory reset it took it back to 1.9.11.
When I manage to get my Touch to go into factory reset again I'll try updating to 1.9.17 then to 2.0 and see if this fixes the issue.
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