Ipod touch won't work after installing a new app.

Hi!
Last night, I decided to install a new "Alarm clock," app and test it out by setting it to ring a minute later- what a BIG mistake, because during the time it was supposed to ring, it made my Ipod touch completely crash instead. For the past few hours all it's been doing is flashing back and forth between my homelock screen (with the "slide to unlock," bar at the bottom) and the Apple logo, with the round 'processing' image infront of it.
I have tried many different things to get it out of this funk but nothing has worked! I tried resetting the Ipod by holding down the menu and power button, the screen went black temporarily, didn't show the "slide to power off" bar and then just reloaded with the same two flashing images. I tried restoring it, but it wouldn't restore, until I did a special reboot that I read about via online boards- where you have to hold the power + menu buttons for 10 seconds, then release the power button whilst holding just the menu button for 10 seconds- but, whilst the Ipod did go through the whole restoring process thereafter, it didn't manage to sync up.
Now, not only does my ipod STILL flash back and forth between those two images. I keep getting an error message of (0xE80000001)! I used a different cable to try and sync up, but the blasted thing still won't stop flashing back and forth between those two images, and the ipod is not being recognised by itunes so the ipod keeps beeping, in and out of itunes and won't sync!
My ipod isn't 'jailbroken,' I haven't touched it's software or altered it in any way, to how it was sold to me. I would've liked to have brought it back the the Apple store to be looked at, but I don't think they'll help me because the top left hand corner of my Ipod is completely missing after my niece dropped it a few months ago- the Ipod still worked (up until I installed the **** alarm app) perfectly well until now!
Also, I have a mac, so any tips on how to access/help/fix this problem would have to have instructions for a Mac OS not Windows please!
Many thanks!

I keep getting an error message of (0xE80000001)!
Read here.   iPhone, iPad, iPod touch: Unknown error containing '0xE' when connecting

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