IPod Touch 1st Generation doesn't work directly out of the box?

I just bought a first generation iPod touch and first things first I plug it into my PC. Nothing happens on the iPod and on iTunes I immediately get a message saying "iTunes has detected an iPod in recovery mode. You must restore it before it is usable with iTunes." So I hit OK and click yes to the message about restoring it to its factory settings, considering that's how it should be anyway since I had literally just taken it out of the box. I finally get a reaction from the iPod, and it's a solid white screen followed by the apple logo, and then for about 5 minutes iTunes says it's "prepaying the iPod for restore..." followed by the error message "The iPod "iPod" could not be restored, an unknown error occured. (1604)" Then the iPod disconnects from iTunes and proceeds to be frozen at the Apple logo screen. I have looked at all the troubleshooting walkthroughs and none of them work because I have never seen a screen on the iPod other than the Apple logo, it seems as though the only way to fix this is if I just take it back and get a replacement

Hello and Welcome to Apple Discussions. 
Is the device brand new? - the Second Generation have been around for some time now so I hope you got a good price on it.
Have a read of this article which explains how to deal with the 1604 error:
http://support.apple.com/kb/TS1458
Let us know how you get on.
mrtotes

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