In the end i found some hints that work. If you get error 1602 on Windoes XP/ipod combo don't follow the help on apple.com
0. take backup if it hasn't happened already
1. Look in recycle bin for old firmware. Open properties, hit restore to place file back in right place....c:/documents and setting/{your name}/application date/Apple computer/Itunes/ipod software updates
2. version that was working for me was ipod2,1_2.2.1_5H11a_restore
3. Force itunes to tell you ipod is sick and needs restore. Shutdown itunes, unplug ipod, restart itunes, insert usb into ipod
4. itunes will figure it's sick and ask you if you want to restore....now heres the trick
5. hit SHIFT and the restore button on the itunes app. It will open a dialog box and you can select the file from steps #1 and #2 above
6. it will reset the firmware
7. you can restore you backup
this is more a reminder for me for the next time i hear myself say "duh, why did i do that?", which will be in about 6-7 months time!