[cpjr]

Is it going into DFU mode or Recovery Mode? If the screen has a pic on it, thats "recovery mode".

To restore you will probably have to use DFU mode, to do this:

1. Power off Ipod, plug into Itunes.

2. Hold power button for 5 seconds.
3. WITHOUT releasing power button, hold home button (now both) for 10 more seconds.
4. Release power button (still holding home button) for around 10-30 seconds until Itunes recognizes it (hopefully).

Then restore.