Ipod Nano 8GB 4th Gen stuck in a restore loop

Screen is black - reset sequence has no effect. Itunes initiates a restore sequence, The nano Beeps 4 time , and loops in restore sequence.
No network drives on the PC ( windows vista 64Bits). Itunes got updated 2 days before this happened.
I have A Shuffle that work fine using same computer and usb ports.
Daugther says nano it was dropped on the floor. Worked a month.... I`m out of ideas- anyone has a suggestion ? Thanks

Brought the brick to the Genius bar to be told I had 2 options:
1) - Get it evaluated by one of the tech. They will tell me how much it will cost to get it 'fixed' I.E. the will replace it by a factory refurbished one.
2) by a new one with a 10% discount if I bring back the broken one.
Will get it evaluated and will post the cost estimate...

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    Hi clarity,
    Welcome to Apple Support Communities.
    You may want to first try removing and reinstalling the latest version of iTunes by following the steps in this article:
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    http://support.apple.com/kb/HT1923
    If you continue to receive the error message when connecting your iPod, see this article for more troubleshooting tips:
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    Best,
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