Yes, but you won't be able to use Multitasking or make a background for your apps. Folders and the stylish new dock are pretty neat, though.
iOS 4.2.1 is the highest iOS firmware you can reach on the iPod Touch 2nd Generation.
No
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iBooks if available on 2nd, 3rd and 4th generation iPod touch with the iOS 4.0 update or higher. Since 1st generation does not support iOS 4, iBooks is not supported for 1st generation iPod touch.
The 2nd Generation iPod Does not have the processing power to run iOS 7. Neither does the 3rd or 4th generation. Only the 5th generation iPod Touch can be legally updated to iOS 7.
There is no iPod Touch 5th Generation. The iPod Touch 4th Generation runs iOS 5.
Only certain model iPod touches are capable of supporting iOS 4.3. The minimum iPod touch capable of supporting iOS 4.3 is an iPod touch 3rd generation, from 2009. The highest iOS that this model iPod touch supports is iOS 5.1.1.
Sadly, no. The latest version of iOS for the 4th Generation iPod Touch is iOS 6.1.5.
1st and 2nd Generation iPods do not have the capability of running on iOS 4. If your iPod does have capability, then you will get a reminder to update the software when you plug in your iPod to iTunes.
Assuming you have at least a 2nd generation iPod Touch (1st generation iPod Touches do not support iOS 4.) simply plug your iPod Touch into your computer and open iTunes. You will be automatically prompted to update your iPod Touch. If not, find your iPod on the left hand side. Click your iPod and your iPod's information will open. Click the button labelled "Check for updates" and your iPod Touch will be automatically updated to the latest iOS version.
This only works on iPod touch third generation, iPad,or iPhone and you have to have iOS 4. If you are using the second generation, you will have to jailbreak you iPod touch.
The only iPod that can run iOS 7 is the 5th generation iPod Touch.