We did the upgrade, no issues. We also did the MobileMe upgrade and no problems with that either. Calendar, mail etc. are all pushed to the Itouch automatically which is nice. Also the maps feature seems to work better, maybe it is just me, but it seems as though the WiFi search feature is easier now, it seems to just pick up a signal rather than having me go through the settings feature. Also try some of the new apps...Othello is fun, weatherbug is a good one too, scribble has been a good one to have when I have been out with the kids, my 5 year old has used it to draw small pictures and then I can save them and use them as a screensaver.