Failed Upgrade to Version 3.1.2 - iPod Touch now won't restore - HELP !!

I sync'd my iPod touch (2nd Generation) today and decided to upgrade from V3.0 to the V3.1.2
The upgrade was donloaded but somehow failed to load onto the iPod. Saw the message on iTunes "Updating iPod Software" but after about an hour I gave up and reset the iPod and PC. Now I've tried to restore it but I just get the White Apple logo on the screen and a progress bar that's stuck. iTunes still shows "Restoring iPod software". Tried this about 3 times now and ready to give up !!! Any ideas welcome. Thanks. Gav

Having sililar problems with one of my 2 ipod touch.
One set up fine. The other however is stuck at the first step!Picture of the itunes logo and the usb cable.
I did manage to set it up fine and get some music on it. However itunes asked that I update the software for the device. I clicked update and now the ipod is back to the start and stuck in that mode.!!
Help!!

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