My iPod touch is not responding. I can only turn it off. When turned on, it only displays the USB connector pointing to the iTunes icon (i.e. connect to iTunes). When connected to iTunes (via USB on back of iMac), it showed up only once and said "you must restore". When I tried to restore, it said I was unable to restore. Now, it will not even show up within iTunes. Therefore, I cannot backup, restore, or do anything. Apple Support pages led me nowhere.
Is there an Apple Store within driving distance of you? How old is the iPod touch -- is it still under warranty?
Is there any number code displayed in that window that tells you your iPod touch would not restore? This article covers a lot of information about various restore failures. http://support.apple.com/kb/TS3694
Eh? 3 year old thread here. Please try to post something relevant (but the OP hasn't returned in that time, either, so likely figured it out somehow.)