6th generation Nano stuck in restore/recovery loop

My daughter's nano won't come back to life. It's a 6th generation attached to an iMac running 10.6.7 with up to date software.
Restoring it brings me to a panel that says iTunes needs to prepare your iPod for recovery. OK, so I click continue, which eventually brings up a panel that says iTunes has detected an iPod in recovery mode and that it must be restored. And back to the beginning, ad infinitum.
Disconnected, I can reset it, but the screen stays black and never gets to the Apple.
How can I break this cycle?
How far can I throw an iPod nano? I hope not to find out.
Thanks in advance.

I had this exact issue with my iPod Nano 6th Gen. Spent close to 4 weeks on forums and found no solution. Ended up calling Apple Support and they directed me to a Service Company here in Singapore. But I was immediate faced with the dreaded UV torch, the torch they check water damage with. After 2 iPod Shuffles and now 3 iPod Nanos, I should know better. iPods are just fit for exercise,. no matter how careful you are, or what protective case you use. Nothing is going to protect it.
The current iPod Nano 6th Gen will have restart issues and require you to restore when connected to a computer, usually resulting in Unknown Error 1430 (VERY common error).
Result was I am continually told the iPod is water damaged and not covered. Seems the iPod range has a hyper sensitve water sensor, which even moisture on your headphone plug will set off. If you google iPod Water Senor you'll find hundreds of cases globally with the same issue.
This ***** cause the iPod Nano, particularly those that are Nike+ compatiable are heavily marketed as music players for exercise. But the reality is, they just can't handle sweat.
I also experienced this annoying reality with the previous iPod Shuffle, where the earphone controls continually broke down from moisture.
After 6 years of trying iPods for exercise, I am still waiting for one that is actually built for exercise.

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