IPod touch 2G not restoring after paid 3.1 update

Hi I'm new here, this is my problem.
I have an iPod touch 8GB 2G, purchased in August last year, anyway, I decided to treat myself last Saturday and update it, thing is, when it updated it froze then put itself in restore mode, thinking this was just part of the process of updating I clicked restore, it then decided not to update and iTunes gave me a bout of errors such as the most common (13,14,1604) and the uncommon (20) after feeling extremely guilty for even bothering with the update in the first place, I did everything possible to make it work such as;
removing iTunes
Re-installing all apple software incl iTunes.
After managing to calm myself down my friend offered me his 2G 16GB as he was given two iPod's in September by his divorced parent's.
So I plugged this one into iTunes ready to sync it, when suddenly; it decided (against my will) as I'd already purchased the update, to update this one to a 3.0, the exact same process occurred and I now have a brand new iPod that will not restore itself.
May I say I have tried EVERYTHING, un-installing, re-installing, deleting the software updates, re-booting, different computers, I have even tried a jailbreak with no success.
As I live in Scotland and both iPod's were purchased in Argos, I cannot get support from anywhere, any suggestions or help, PLEASE, I am at the end of my tether and I don't want a brand new iPod touch to go to waste.
Can I also mention, I have tried restoring it from various iTunes series, (7.0,8.0 and 9.0) and it is not restoring in any of them.
I have tried jailbreakers; Ra1n and QuickFreedom.
I think this may be to do with the 3.1 software from Apple, therefore, after reading various similar posts, I am not alone.
This has had me in tears as my original 8GB iPod touch was a gift from my recently deceased grandfather and the fact it has broken has had me in tears.
Anyway, help is well appreciated
Message was edited by: AshleyColeman
Message was edited by: AshleyColeman

I had the same problem once and right now I'm typing this reply on the iPod that had the error, so it's a semi-easy fix. This isn't the way I did it but as soon as I remeber I'll post that as well.
Ok, first check to see if your iPod is connected to your computer via a USB hub. If so then unplug it and plug directly into a USB port on your computer.
If that doesn't work try updating the USB driver like this:
1. Plug your iPod into the computer (no USB hub).
2. Quit iTunes if it is open.
3. Click on the start menu.
4. Click control panel.
5. In the control pane,l click on administrative tools. If you don't see this option look at the left column and click switch to classic view. You should then be able to click administrative tools.
6. Double click the computer management option.
7. In the left column you see the device manager option under the system tools folder.
8. In the right column, click the plus sign next to universal bus controllers to expand this option.
9. In the dropdown list look for anything related to iPod or Apple. You might see something like "iPod" or "Apple Mobile Device." You may also see a yellow colored exclamation point symbol, which means you need to update the driver.
10. RIGHT CLICK the "iPod" or "Apple Mobile Device" and choose update driver from the menu.
11. A hardware update wizard will pop up. Choose "Yes, this time only," then click next.
12. Select insall the software automatically and click next.
If that doesn't work let me know. This is a fix I found on the Internet. Some people still had trouble afterwards and others didn't.

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