Grr. I have to pay six quid for the 2.0 software upgrade?
But you don't... If you don't want to upgrade to 2.0 then upgrade to the 1.1.5 firmware which is mostly bug fixes, and is free...
See : http://www.macrumors.com/2008/07/15/apple-releases-ipod-touch-1-1-5-firmware/