Continuous endless cycle of restoring messages and iPod does not restore.

I have a black iPod Nano 4GB and I've been trying to restore it for hours. I have the latest iTunes and the latest iPod software.
Everytime I plug my iPod into my computer, it shows up in iTunes and iTunes says that I need to restore my iPod, so I click 'ok' and then I click 'restore'.
Then a window pops up saying that restoring it to it's orginial factory settings will erase songs, etc. So then I click 'restore'.
Then I wait and watch the progress bar.
Then a window telling my that my iPod is restored and to leave it plugged in pops up.
So I leave it in.
iTunes says it'll appear in the source list, but then the same message saying that I need to restore my iPod keeps popping up.
Then it just keeps going in this endless loop of clicking 'restore' and a continuous cylce of windows appear on my screen.
This is probably like the 7th time this has happened, and it's so frustrating!!
PLEASE HELP ME!

Have you had a chance to look at this troubleshooting page? Have a look at the bottom section that covers what to try if restoring doesn't work, it may be of some help: iTunes has detected an iPod in recovery mode - Use iTunes to restore

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