Ipod stuck in recovery mode and restore fails every time

Hi, Just bought a refurb ipod touch (2nd gen 8gb). As soon as i plug it in and boot up itunes it says its discovered an ipod in recovery mode and that i need to restore it. Problem is the restore always fails. Not really sure what else to do? Ipod screen just displays the usb connect to itunes diagram all the time,
Do i have to send it back already or does anyone have a miracle cure?
Thanks

Welcome to the forum.
Try [Unable to update or restore|http://support.apple.com/kb/HT1808]. You may have to try this more than once. If you see the "Connect to iTunes" screen but the device does not appear in iTunes, try [Device not recognized in iTunes for Windows|http://support.apple.com/kb/TS1495]. (If you are on a Mac, there's a Mac link on that page).
If you device does not appear in iTunes or cannot be restored in iTunes (and you're running Windows) try [iPod is not recognized by Windows due to driver installation issues|http://support.apple.com/kb/TS1538]
If you are running any antivirus, spyware, firewall, etc. that might be interfering with this process be sure to turn them off. Also plug your USB cord into a different port than you tried before.

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