Over the weekend I received an acknowledgement from Apple that they are looking into the issue. They asked that I give them 3-5 business days for their investigation. I know this wait is no fun, for you and me.
I do want to offer an idea to make sure you get a chance to download Cinder while it’s available for free. Instead of trying to download from your iPod Touch, do so from iTunes on your computer. iTunes shouldn’t stop you from downloading, although it will stop you from trying to install it on your iPod Touch.
Downloading it now means you get it for free, and then whenever the issue is resolved you’ll be listed as an owner of the application. That way, whatever update is needed, you shouldn’t be charged for the application as you already own it.
I’ll keep posting updates as I have them. Thanks for your patience.