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I may be slow, but I couldn't figure this out. I just got a 3G iPod Touch to replace my 2G. I can't seem to figure out how to restore the 3G with all the same settings and apps as the 2G using my 2G backup. Is this even possible?
It is. What you'll need to do is reset the new iPod to factory settings, if it isn't already. Once that's completed, you'll restore your backup on it. Here's the Apple Support document that outlines how to do it.