IPod Touch 2nd Gen borked after failed OS update in iTunes

My iTouch was working fine with my PC (Windows 7 64bit) and iTunes (9.1.1.12).
I was upgrading the OS on my iTouch 2nd gen to the latest version (3.1.3???) via iTunes and the update failed after ~5 mins. The iTouch will now no longer turn on, I have tried resetting (hold sleep and power) but nothing I do can get the iTouch to power on.
Connecting to windows I get "Unknown USB device" and "Windows has stopped this device because it has reported problems. (Code 43)".
Updating the USB device driver to the apple driver usbaapl64.inf I get "This device cannot start".
any advice would be appreciated.
Message was edited by: Sigd

I have received a new iTouch in the post , worked fine with OS 2.1.2.
I need to update to OS3 so I installed iTunes on a different computer (laptop) with Windows 7 (32 bit) ... and ... the same thing happened. Update ends with notification of a device in restore mode, restore fails twice, and on the second time the PC no longer recognises to iTouch and can't install the drivers, the iTouch itself will no longer turn on.
APPLE PRODUCTS BREAK UPDATING OS ON WINDOWS 7!!!

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