2nd Gen Touch Hangs with Apple Logo & Status Indicator During Restore

Something is wrong with my ipod. It will not work at all or even boot up. I can get it to quit displaying the apple logo by following instructions to do a restore. In iTunes, i get a message saying it detected my ipod in restore mode and to click to begin. After I click, it runs thru some unpacking of software, and preparing my ipod. At this time, my ipod disappears from the left column in iTunes, the screen on my ipod turns white, then i get the apple logo, then an apple logo with a circular "working" indicator, then the apple logo with a blank progress bar. iTunes says its waiting for ipod. The status indicator on the ipod never moves even after hours of waiting. It hangs up in the same place in the process every time... about a dozen times.
What is wrong?

I've been griping... but i kind of have a reason to gripe. What I have also been doing is providing additional information about my quest for getting this thing working: the things i've tried, the stages i've gotten past, and where it still hangs up. I was hoping that by providing some additional information, it might actually ring a bell with one of you Apple pros, because I'm sure you've heard it all, and seen it all. If the thing is broken, just tell me. That's all I want to know at this point. But since I get slightly different results depending on what i do, and what firmware version I use, I figured it must be fixable, and that someone knows how to do it... even if that advice is to take it in somewhere... or if I can mail it in.
So I get it. You gota pay for someone from actual Apple. And no one is gona tell me its broken on this forum cuz its bad for Apple business, and you guys will lose brownie points or something.
RIP OFF. This was my first ever Apple purchase... and it is my last, unless someone wants to go out on a limb and tell me what's up with this thing. I have a CD player from 1989 that cost half as much, was under water twice, and still works, and actually sounds better. It's not so easy to mow the yard while listening to it, but thats about it.

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