Chosen Solution
Is it possible to upgrade to a 4.0 on a 2 generation touch iPod
The max is 4.2.1 for this generation. It’s not going to go any higher. Yes, some apps like Angry Birds cause a problem. This is to do with the OpenGL support on 4.2.1, since it’s simply too old to support the version of OpenGL that Angry Birds now requires to run. You can try, but if it complains about OpenGL it won’t install due to a OpenGL incompatibility. You’ll need to get a newer iPod to run Angry Birds.