IPod Touch 3G randomly stops working, WON'T restore (due to 1603 error)

I was listening to my iPod Touch when I paused it for a moment & when I went to press play, the Apple logo came on followed by the iTunes logo and the USB port. I've never restored it before so I read that when that image shows up, you restore it on iTunes so I tried and I keep getting the same error (# 1603). I read that if people send in their iPod (those who have the same issue as I do) & get sent another, it still won't work.
- I've reinstalled iTunes: nothing changed
- I've used different USB ports: nothing changed
- Tried to restore it on another Mac: nothing changed (I get the same error)
- Tried to download another firmware to restore: didn't work
I'm really frustrated & feeling lost without my iPod Touch! Please help!

well, you are not alone! i have an itouch 2g, but it's doing the same thing. actually i'm having so many issues, including the battery drain situation as well. my itouch doesn't stay on at all at this point. i can hear a low click noise when trying to reset by holding both buttons down (btw longer than 10 secs) however, randomly gives me an apple sign. unfortunately, i dont have a solution either. i need help 2. i didnt know what was happening (thought a bad electrical cloud following me!) til i saw all these posts. crazy & disappointed

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