It looks like there are a bunch of iPod Touch users that keep getting a screen prompting them for a January Upgrade. When clicking on No Thanks or Remind me later they get an error:

An error occurred. The iTunes store could not process your request.

Then the message won’t go away.

Here are some steps to try for this issue:

1. Unplug the iPod Touch and disconnect the computer from the Internet.

2. Close iTunes.

3. Wait a few seconds and Re-Connect the iPod Touch.

4. Start iTunes.

5. When prompted with the message, click Remind me later or No Thanks, then OK then quickly click the X button at the top to stop loading iTunes shop.

6. Close iTunes and reconnect to the Internet.

7. Start iTunes.

For more assistance, you might want to try the Apple Forum entries: Can’t get rid of iTouch upgrade offer