Ipod in endless reboot loop when plugged in?

I acquired an ipod touch 2nd generation from a friend, and they don't know what's wrong with it, and neither do I. I've tried all the tricks by pressing the home and power buttons, plugging it into itunes, trying to restore it, etc.
When I try to plug it in, it'll power up to the apple logo, and then reset, so all I ever see is the apple logo and it won't go any further. I can get it into restore mode, but when I hit restore in itunes, I get an error.
Also, it doesn't actually power on unless it's plugged in, so this led me to believe it was a battery issue maybe?
I have no idea if it was ever jailbroken, or how it was used. It has some cracks in the screen, but does power on when plugged in, so it's not COMPLETELY broken.
Any ideas?

Error 1604
This error is often related to USB timing. Try changing USB ports, using a different dock connector to USB cable, and other available USB troubleshooting steps (troubleshooting USB connections. If you are using a dock, bypass it and connect directly to the white Apple USB dock connector cable. If the issue persists on a known-good computer, the device may need service.
If the issue is not resolved by USB isolation troubleshooting, and another computer is not available, try these steps to resolve the issue:
Connect the device to iTunes, confirm that the device is in Recovery Mode. If it's not in Recovery Mode,put it into Recovery Mode.
Restore and wait for the error.
When prompted, click OK.
Close and reopen iTunes while the device remains connected.
The device should now be recognized in Recovery Mode again.
Try to restore again.
If the steps above do not resolve the issue, try restoring using a known-good USB cable, computer, and network connection.

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