Just found this out, thought I'd share. For some reason, iTunes skipped downloading a podcast episode last night of http://www.keithandthegirl.com and since I have listened to every show of theirs in order, all 871 of them so far, this freaked me out. 872 was missing, but 873 was there. So I went to iTunes using my iTouch, selected the episode for download, and off it went. A few minutes later I thought it would be a good time to update any Apps I have on the device. Two updates were available and when hit the "Update All", the iTouch crashed back to the desktop. Tried again, same result, tried again, same result.
It appears that, unlike a PC/Mac that can handle downloads from multiple sources and stores them in some sort of queue, the iTouch / iPhone doesn't have this ability. If you're downloading App store updates, you can't download a podcast from iTunes at the same time....and visa versa, as I described above. The apps are so independent of each other and the iTouch / iPhone seem not to notice or care, that nothing running on the device knows what else is running on the device and when you do something super crazy like try to download a podcast and update your apps at the same time, all hell breaks loose.
I guess I shouldn't complain...The podcast download is nearly done, I'll be listening to my show in no time, and then can update my app store apps. I just found it odd that such a whicked cool device like my iTouch can only download one thing at a time...