If that window doesn't appear, you can start an update manually by following the steps below.New versions of i Tunes are almost always better than the last—but not every time and not for every user.Next to the word Version is information that describes the software version installed.
Firmware updates for the i Pod are downloaded from the i Tunes application, and require an active Internet connection to download the software update.
Sign into your i Tunes account if you are asked to do so, and then click “Download” to download and install the software update on the 2nd generation i Pod.
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The fastest way to find out if the version of i OS on your i Pod touch is the most recent version, choose Settings→General→Software Update.
If a new version of the software is available, you see the Download and Install button.