IPod Help needed from serious Apple gurus - iPod Touch 2g 16g stuck in restart loop. Will NOT enter DFU or recovery mode, NOT recognized by iTunes on Windows or Mac

Ok, so here's the not so sad story. I bought an iPod Touch 2g 16g through Ebay - so forget warranties. Luckily I did not pay much. The description said it was stuck on the apple logo, so I figured it would be an easy put into recovery mode and restore problem.
Not so much.
If you plug the iPod in and charge up the battery the LCD will come to life after a while with the apple logo, then it displays the spinning wheel with the apple logo over it. That will last anywhere from 10 - 15 minutes, then the iPod will go blank for a few secs and then start up the cycle all over again.
As stated, this iPod will NOT enter either DFU or recovery mode and believe me I've tried it several times several different ways with different timings, connected via USB to a Mac, connected to a different Mac running Windows, and connected to just the charger. Nothing. Occasionally the screen might go blank while holding the power and home buttons but nothing else happens and then it starts it's usual cycle again.
Again, iPod NOT recognized by iTunes on either Mac or Windows side. Since I got off Ebay and seller didn't know much about it, I have no idea if someone tried to jailbreak this or not.
I will not put much money into this machine. So I guess my question is: does this behavior mean that the motherboard is clearly fried? Are there any software programs that might diagnose what the problem is? Could it be as simple as a fried battery?
And most importantly, is this iPod simply toast or is there anything anyone can suggest????
Really any suggestions would be greatly greatly appreciated. Seems a shame to just trash an iPod touch that might need a simple fix...
If it helps matters, I can tinker with iPods somewhat and have torn down and replaced several iPod touch 1g and 2g glass and digitizers with no problems. I'm somewhat software savvy but the whole jailbreak thing is new territory... and I can't really figure out the command in Windows or Mac terminals to list all connected devices so I have no idea if the computer even knows the iPod is there, even if iTunes doesn't. Guess that's it... ummm, please help???

Nothing huh? No one's had this problem or this isn't fixable... oh well... if anybody comes up with anything I'll check in occasionally...

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