We want to make sure that all iTouch 5th Generation device owners know there have been reports of problems updating to iOS 6.1.
Unfortunately, one of our team members was unable to update their iPod Touch 5th Generation to iOS 6.1 using iTunes, eventually leaving the device in an unusable state. There are many more users that are also experiencing this problem. At this time there are no good solutions we can offer other than calling your Apple store to make an appointment if your device is in an unusable state after trying to update.
We have not had any problems with any other models including the other generations of the iTouch. There are a few folks out there that have taken the leap to upgrade their iTouch 5th Generation and had no issues but many more did not have that same luck.