My Touch worked pretty well out of the box, had a few minor issues but nothing too problematic. As soon as i had an SD Card inseted i had all sorts of problems with the connection of my HDD - System Errors , unable to connect to USB etc. It would be working ok in the evening, left in stanby overnight & in the morning would be disconnected with error messages showing. After a couple of days i took the SD card out (which was not actually being accessed by the Touch) & i now have no problems with the connection of the HDD or swapping libraries etc. If you have an SD Card inserted, try taking it out & see if things impprove! It worked for me.
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