3rd gen 8Gb non continually reboots - what to do?

I went to add some songs to my nano and iTunes said there was a firmware update, so I said yes to install it and when the iPod rebooted, it just kept rebooting again and again. The Apple logo shows up and then 5 seconds later the screen goes blank and it boots again. Has been doing it all day. None of the restore things work, probably because it hasn't booted far enough to work with the buttons. Doesn't show up when plugged into USB.
Any ideas as to what to do?

i had the exact same problem with firmware 1.0.2.
had to reset by holding menu & select for about ten seconds, then
pressing play/pause & select for another ten seconds to enter disc mode.
i then reset the nano with itunes and downgraded to firmware 1.0.1 (after deleting the files iPod_26.1.0.2 and iPod_26.1.0.2.ipsw.signature (are in the folder *ipod software updates* somewhere on the harddisk)).
now in works just fine with fw 1.0.1.
fw 1.0.2 obviously contains a bug.

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