When I was stuck on step 3, I unplugged the USB, let the Touch do its thing, and then did a WiFi sync which took it the rest of the way.
I believe step 3 happens after the firmware is downloaded to your Touch. Safely disconnecting led to the processing of the update, but I had no books. I got the books by connecting over WiFi.
Last edited by taming; 07-29-2012 at 04:35 AM.
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