Each and every time it happened to me, though it was a pain in the arse I realised how well the Touch worked, no brickage
I got that error REPEATEDLY trying to jailbreak my 16gb 1.1.4 with some other prog. Supposed to take 5 mins, took two days of constantly rebooting, down/upgrading then repeat until I tried iJailbreak, which worked first time. Frustrating, but I'm now left with a happy Touch (which won't access Youtube...)
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