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Thank you for the reply. No Mac here. I got an email as well stating to use webdav or omnifocus's server. I was so desperate last night that I ended up signing up for the free trial of MobileMe and restored it that way as my life is literally in OmniFocus.

So I'm thankful that I was able to at least backup the database file and restore it that way as my itunes ipod restore was corrupted when I got the new ipod touch, but surely there has to be a way to restore the database from within iTunes. Many thanks for the quick replies.