Ipod with "apple" on it alternates between bright and dark - can't reset?

I have a 5th generation ipod (30gig) and I just downloaded the most recent (March 23rd) software update.
The screen (with the apple logo in the middle) goes from "light" to "dark" and when it goes to dark the ipod sounds like it wants to close down but it doesn't. It just continues in this bright/dark sequence.
I've tried resetting to no avail.
Can anyone suggest how I deal with this
Thanks

The previous owner/user must do this.
iCloud: Activation Lock
http://support.apple.com/kb/PH13695
Find My iPhone Activation Lock: Removing a device from a previous owner’s account
http://support.apple.com/kb/TS4515
iCloud: Find My iPhone Activation Lock in iOS 7
http://support.apple.com/kb/HT5818
 Cheers, Tom

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