Brand new Ipod Touch, tried to update, stuck in recovery for hours

I just received an iPod Touch today. I hooked it up to itunes, played around with it for a bit, with no problems, and several hours later downloaded the upgrade 2.02 from the itunes store. I followed the directions. In the process of downloading, I noticed that it seemed to be stalled on "Verifying Ipod Software" for over an hour. The screen of the ipod displays the Apple logo and the little circular icon that indicates progress beneath it (which had stopped for some time). After several hours and after searching for answers here, I figured that there must be a problem. I couldn't do anything in itunes and the only thing to stop the downloading was to force the ipod to shut off. I hated doing this, but I knew something was wrong and there was nothing else to do. I discovered that itunes was actually frozen and I had to force quit that, as well.
I started up the ipod again, and of course, it indicated that I needed to plug in the USB cord. I did and it prompted me to restore. I tried to do that and came up with the 1604 error. Tried it again, same thing. Then, when I restarted the ipod, I came up with a white screen, which was quite scary. I shut down my computer and started it back up again. I began the recovery process, which, this time, went smoothly, until I hit the "Verifying iPod Software" section. It's been over an hour and it's still on this. The progress bar isn't moving forward, it's the sort of moving stripes bar, if that makes sense. iPod screen is frozen. I'm afraid to either disconnect/quit again, or leave it. I'll have to disconnect at some point to take it to the Apple Store, but I'm afraid I'm only damaging it further.
I know these questions have been asked here, but I'm not even expecting an answer to the root of the problem (I'm used to this madness, as a frequent Apple customer). I just need to know whether it's better to quit this recovery and disconnect, or just keep leaving it. How long until I KNOW that it's not working?

Well, I figured since I had nothing to lose on the ipod (since I'd already stopped the updating once), I would just do it again, and try to restore it without the firmware upgrade. Because the ipod worked just fine with its original settings. The exact same thing happened - itunes was frozen.
So I went through the process again, only this time I followed some advice from another thread, tracked down the folder where the firmware update was stored, and trashed it. Then I tried to restore the ipod again. Well, it turns out that there's no going back to the old version. It merely downloaded the firmware update yet again. I let it go, figuring that there could have been something wrong with the first download and I'll wait and see. Now, I'm in the "Restoring Ipod Software" section. I have a feeling nothing will change. So, I'll be taking this to the Apple Store tomorrow (and raising ****).

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