IPod Touch Stuck on loading spinner

So, today I updated from iPod Touch software v1.1.1 to v1.1.2.
All went well until the iPod restarted. After that, it went to the home screen. Then the loading spinner came up in the middle of the screen. I figured nothing was wrong, so I waited until it was done. Once it finished, an  took its place, but then promptly disappeared and the loading spinner was back. This cycle just keeps repeating. I have run the "Restore" in iTunes twice now, and the same thing keeps happening. To add to all of that, the iPod won't turn off either. Any suggestions?
Sorry if there is already a topic for this, but there are so many "help me" topics that I could not read them all.

Hi Juxe
did you jailbreak your iPod touch? i am just asking since I've experienced a very similar problem when updating mine to 1.1.2 - mine was jailbroken. still I decided to update , which went fine up to the report were i got stuck with an endless reboot cycle.
I've downloaded 1.1.1 and placed it into user/itunes/iPod Software Updates
then I went over to iTunes and cmd clicked on restore. Itunes will ask you if you'd like to backup your stuff prior the restore. first time i tried it I accepted. this unfortunately did not fix the issue for me. therefore the 2nd time I restored I declined the backup. once the restore was done iTunes asked me if I'd like to revered to the backup which i declined. it restarted the iPod touch and presto all is back to working order.
Since then I am back on 1.1.1 and all is fine.

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