ITouch 4th Gen, crashes almost daily, how do I fix it?

Question

Ok, a month ago the iTouch started to act up, when iOS 5 was released.  Clearly it is a software issue.  At that time, I came to this site because it would not start, it kept the apple logo up.  I eventually used the white apple PC connection cord and did a restore of the product.  It wiped everything clean and re-installed everything as I had it upon my last backup.  At first it was a decent fix.  Then, a week or so later it crashed again, but this time, only while using certain apps.  (Pocket Frogs, Diner Dash, Mail and Safari).  During this time, it would simply restart the iTouch, so I thought nothing of it.  A few days later, it did the same as before and crashed without being able to restart.  So I did the same process again.  It worked, but from this point on, it crashed and would need to be restored about every other day I used it.  I ended up restoring it almost daily for the past couple weeks.  I eventually tried to not even use my backup again, in case the issue were the files I had.  However, it still continued the same process.  Now, within the past few days, I keep on getting errors when attempting to restore my iTouch like before.  I have updated the new iTunes, I have restarted the computer, drained the battery of the iTouch, etc.  Every time it gives me a random error from a security issue, to wrong mac address, to a bad USB connection, to not even seeing the iTouch in iTunes.  I have evern attempted to fiddle with the options in iTunes, to avoid downloading the latest version of iOS for the iTouch, and it will not allow me to go back to the older version for some reason.  I can only get the latest iOS when restoring it. 
The questions I have are: is there anything else I can do, instead of doing the same thing again and again in hope it will work again sometime, as well as is there anything I can do to prevent it from crashing once again?  Is this a iOS problem that they are planning to work out the kinks for 4th Gen iTouch/iPhones?  (I have been having a hard time finding any information about this issue outside the fact that more than one person has had this issue).  And, can I restore the iOS software to the original without an automatic update with the latest iOS?
Thanks in advance!

Answer 1

Ok, I have done the system restore process, aka the holding of the power and home button.  That is in fact what I have been doing all this time.  I have gone through the troubleshooting guide and updated Windows, iTunes, restart my computer, changed USB links, wait until the battery died to restore, wiped the backup off completely, and reinstalled the iOS with the backups (Both from before the issue arose and well after).  It started off slow, but now it has become more frequent to the point that as of today, it won't even let me complete a system reset/restore.  I cannot access the iTouch browser as it is stuck in system restore mode.  It has given me many difference reasons as to why the install has failed, including:  9, 14, 21, 28,   All on this page: http://support.apple.com/kb/TS1275
When it does fall it usually crashes halfway through the installation, goes white screen and restarts system restore mode to have me go through the process all over again.  Then, provides me with one of the above reasons, and usually changes the number every attempt.  I will troubleshoot more, but that is about all I have done at the moment.  I am going to try another computer soon to see if I get any better results.