2G won't unlock! Help!

I have an IPod Touch 2G and it worked fine up until yesterday. I went to use it today and it displayed the screen showing the USB cord and ITunes. I had to download the latest version of ITunes then restore the IPod to factory settings. Now, the screen won't unlock.
I have seen in other forum posts of users holding in the top button and the home button to restart the IPod. This doesn't work on mine, it just gets stuck on the screen displaying the Apple logo. Then, I have to plug it into my computer to get it to come back on.
I have had the IPod for 3 years or so now and I do not have a warrenty on it. I don't even know where my closest Apple store is! I just wondered what I can do to fix this thing!!! Also, does anyone know how much it will cost to get it fix if I do have to take it in with no warrenty?

Have you got an ipod nano because you probaly have the screen lock on. When it is connected to the computer can you get on to it?
I hope it helps

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