There's a new software version available for my ipod but when I CLICK to UPDATE it says:

It cannot be updated because the firmware file COULD not be found.

I UNINSTALLED the ipod and itunes and reinstalled but it still doesn't work. I try the restore but that gives me the same problem.

Can anyone help?

I tried the Apple site but I can't seem to find help.

I don't own an iPod but i believe any firmware file would exist on the unit itself...did you have it connected when you RAN the software ? ?

patio.  8-)Yes, it prompts me to connect the ipod when I install the softwareSounds like it is trying to do a version check on your IPod's software (firmware), but can't find the file that contains version info.  That would be an issue with the player itself, not ITunes.  I would find out what kind of warrenties are in place for your hardware (either through the place you bought it or from Apple) and discuss with them the possible causes and fixes for your issue.  It is most likely that your issue is something they have seen before and can either fix or replace, depending on the status of any warrenties.