IPod Touch stuck in Restore mode. (I will give 2 months of person IT help)

Question

+(I will give 2 months of IT help [windows/networks] if you solve this, 1 month if you help me- Im a IT Tech with a degree. - see profile)+
*I was trying to sync my iTouch and it blipped and everything was gone.*
*Now it is in Restore mode permanantly. When I attach it to iTunes, it recognizes iPod in Restore mode, but:*
1) If I try to use the original ( 1.7.7 ) ispw to restore ( with shift/restore), it fails at *Preparing iPod for Restore* and says *iPod can not be restored. Error [various]*
2) If I try to restore to the new (3.0) ispw it fails with *Network Time Out*
3) If I try to use the 3.0 which I have already downloaded ( with shift/restore) another error #1431 occurs during restore.
4) I can not update to iTunes 8.2 as when I try it gets to the end and then says that it can not access the registry key for 'itpc' or similar due to permissions, when I open regedit to look at these keys I also get an error saying that I cannot access the keys due to permissions. I have tried opening in admin account and still "permissions not allowed", I have tried running iTunes though admin, still the same. I also can not alter the permissions even when I am at the highest permission level.
It isnt even seen by iTunes unless I enter DAC mode. Then it askes to restore it but fails every time!
+The USB has no faults showing and I updated all of them to be sure.+
+Everything was fine before this. Running firmware 2.0 or 2.2 ( cant remember or access it ).+
+I dont want to delete the iTunes as Im worried it wont be able to install again and I will lose everything. ( and thats ALOT!)+
+I REALLY need my iPod.+ I use it for work, +I work with disabled children as my 'real job'. IT is just extra $. _All my contacts, emailing etc is trapped now in a iTunes that just refuses to work_.+
As this is SO important to me and the children I work with I am offering:
*THREE MONTHS OF PERSONAL TECH ASSISTANCE FOR WINDOWS AND/OR NETWORKING PROBLEMS FREE OF CHARGE. ILL GIVE YOU MY EMAIL AND IM AND WILL BE YOUR PERSONAL IT GUY FOR 3 MONTHS IF YOU CAN FIX THIS! IF YOU CAN EVEN GIVE ME A USEFUL IDEA, ILL GIVE YOU 1 MONTH OF FREE HELP! PLEASE HELP ME IF YOU CAN!!!*

Answer 1

What type of security software suite are you running on your Vista computer? If it is one of the commercial ones, Norton, Mcafee, or the like, you are most likely suffering from the over zealous nature of these programs.
Are you sure you have top level admin access on your Vista computer. The fact that you can't use regedit to remove keys bothers me somewhat. But this is something for you to worry about. Here's what I would suggest you do:
1. Remove all Apple software from your computer - iTunes, QuickTime, Apple Mobile Device Services
2. Reboot
3. Disable your firewall and virus checker.
4. Download and install the latest version of iTunes.
5. Re-download the 3.0 update
6. Plug your iPod in and install the 3.0 update
If everything is working, then you can re-enable your virus checker and firewall software.
The most likely reason you have had all of these problems is the fact that Apple software needs to "phone home" during the firmware install. If it can't do it because of your firewall, then you are going to get various error messages and no success. The anti-virus software often prevents complete downloading of a file - again leading to errors.