The dreaded "Package Download Error"

Hey guys, 10 Ultimate Techie points to anyone who can figure this out for me.

I got a new 8GB, 1G Itouch recently because the home button died on my old one. I was not having this trouble before. Every time I try to download any packages in the installer I get "Package Download Failed!"

I have tried:

restarting the application
restarting the Ipod
recracking with ZiPhone
reinstalling ZiPhone on my computer
then recracking
reflashing the Itouch
then recracking
downgrading to 1.1.4 <-Really this was gonna fix it.
then recracking

and I've tried it on multiple networks, always making sure I can browse in Safari first.

I've read a couple posts that say it sometimes helps to clear the download queue, but there's nothing in the queue because I can't download jack. Oh, and I've updated the sources too.

Please help me!