Ipod touch erased all user data. Music, Apps, and Pics

Might have a good one for you guys...I work at a local electronics store and a customer came in with an Ipod touch that they claimed to have a "virus". I am aware that Apple products are not prone to viruses (I've never witnessed one before) however I went along with it to hear what the issue was. When using the Ipod Touch, after turning the screen off for a little while, the ipod restarted but there was absolutly no content on the device. Music was wiped, pictures were wiped, and apps icons will still present, but when selected they did nothing. I recommended doing the recovery option by connecting the Ipod to the origional computer it was first synced with, but they tried that and the computer does not register the device. The customer said they contacted the retailor because they purchased an exteneded warranty through them, but it doesn't cover software issues apparently. They contacted Apple support and Apple said their 1yr warranty does not cover software issues, but for $200 they can push an antivirus to the device (I was present during the phone call, which was on speaker phone). The customer is fairly upset about the situation, and rightfully so. I just took it on as a side project just to help them out as they have done a lot of local business with us and I'd like to help them out if I can.
This is where you guys come in. Not knowing exactly what was done to the Ipod doesn't give me a starting point for any tips or tricks that may exist, but I'd like to just run it over with you guys to be sure I'm not going on a while goose chase. Any help or recommendations would be welcome!
Thanks again guys!

You stated:
They contacted Apple support and Apple said their 1yr warranty does not cover software issues, but for $200 they can push an antivirus to the device (I was present during the phone call, which was on speaker phone).
That does not make sense. The warranty covers defects in hardware and software.
I suugest making an appointment at the Genius Bar of an Apple store.
Apple Retail Store - Genius Bar

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Ipod touch erased all user data. Music, Apps, and Pics

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