For one a self powered USB drive is best used with the Touch, not a USB
powered one as the Touch's USB port may not have enough power.
That being said try this as it worked for me:

Get the beta 7.7, it is called fab4_7.7.0_r9550.bin and ir fixed it
for me.....  Just copy it to your USB drive root dir and then do a
software update pointing to the file you just copied to your USB
drive... One thing to note if you are using IE as your browser it wants
to save the .BIN file as a .ZIP file. Be sure to change that so it saves
as a .Bin file.
Also if you go back to the root of the link I sent you you can
downgrade your Touch to 7.53(4) if you want instead.

Get 7.7 here...

http://update.slimdevices.com/update/firmware/7.7.​0/



Hope it works for you.


-- 
bitstopjoe

Joe Sica
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