Here i am posting the procedure to update your Ipod software/firmware manually in just few steps,
1. Download .ipsw file (link given below)
http://appldnld.apple.com.edgesuite…._24.1.1.2.ipsw
2. Download the .signature file. Follow the link:
http://appldnld.apple.com.edgesuite….ipsw.signature
3. After downloading both the files, Click “Start->Run..” and type ‘%appdata%’. [This will open your user application data folder].
4. Then goto: Apple ComputeriTunesiPod Software Updates from there.
5. Place those 2 files which you downloaded in step 1 & 2.
6. Plug in your iPod into PC.
7. Open iTunes if not auto opened.
8. It will popup a screen saying a newer version(1.1.2) is available, do you want to install? Click “Install” button.
This will install the latest version 1.1.2. U have to unplug and plug it again to see the updated version.