IPod Touch frozen after firmware update

Hi,
I have a problem with my iPod Touch (3rd gen).  I am running iTunes on 64-bit Windows 7.
I plugged in my iPod into my PC and iTunes offered an upgrade to iOS 4.3.3.  I accepted as I do routinely; I'm pretty sure
I was running whatever was the latest version previous to this update.
A few minutes later my iPod's screen showed the picture of a cable plugging into iTunes.  The iTunes screen showed a message:
"iTunes has detected an ipod in recovery mode.  You must restore this ipod before it can be used with iTunes."
I selected "Restore" and iTunes displayed a message that it was "Restoring iPod software".
The iPod screen showed the Apple logo and a status bar underneath which seemed to indicate that it was being restored.
It then did "verifying ipod software" and "verifying ipod restore" and finally "restoring ipod firmware".
However, when the process finishes, and after flashing the Apple logo again, the iPod still reverts to the picture of a cable
plugging into iTunes.  For its part, iTunes goes back to the original message:
"iTunes has detected an ipod in recovery mode.  You must restore this ipod before it can be used with iTunes."
I checked that I have the latest version of iTunes (10.2.2.14), and even went to the Apple website and downloaded it to be sure.
As far as I can see the iPod is going into recovery mode (the link http://support.apple.com/kb/HT1808 suggests that this is
achieved when you get the picture of the USB cable plugging into iTunes, which is pretty much all that my iPod displays now).
It's just that the restores do not seem to be taking.
I also tried running the file iPod3,1_4.3.3_8J2_Restore.ipsw which was suggested in a response to a similar problem.
This did not appear to do anything other than start iTunes at the point where it asked me to restore.
Can anyone please suggest a solution such that I may be able to use my iPod again?
Thank you for any help or ideas.

Thank you samuelfromwilmette I think you are right.
To finish the story: I took my iPod to a Genius bar and they were able to re-set it.  I then recovered from a back up but noticed that some of my apps did not recover correctly.  I carried on for a few more weeks and then it simply stopped working.  The iPod would no longer receive transfer files from iTunes, it would not update any of the apps and then a few days later I got the screen of death problem.
Fortunately I still have a netbook running Windows XP.  I set up iTunes on it and was able to restore the iPod.  I now simply use the Windows XP netbook as the computer with which I sync my iPod.  It is not a great solution, because I would rather use my desktop, which is where I have my photos etc.  I am forced to use an external hard drive to move files over.  I have been operating like this for over 6 weeks and it all seems to be holding together!
I think I have learnt two things:
1) Regardless of what they say, my iPod Touch 3rd gen. / iTunes is not really compatible with Windows 7 64-bit.  The fact is that it works perfectly with my Windows XP computer but not with the newer operating system.
2) I do not really need to update the firmware every time a new one comes out, and I do not need to sync my iPod every day!
Thanks again for the advice.

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