Itunes store not available after connecting iPod to iMac

I have just been given an old ipod touch that was working OK. I reset the settings and content and when it had finished it came up with a graphic that I assume means I should connect it to itunes. I connected it to my imac and started itunes, which then displayed the message " We could not complete your itunes store request. The host is down." When I disconnect the ipod and re-start itunes I now get the same message without the ipod connected, when I try to contact the itunes store. Re-starting OSX (Lion) makes no difference. I am able to connect to the itunes store on another computer (I have not tried connecting the ipod to the second computer - I don't want to break that one too!)
I've tried updating itunes but I get told that I can't connect to the update server either.
Any suggestions please?

I've had a bit more contact with the iTunes store support people by email and they have been equally unhelpful. Why do Apple employ people to guide me to support articles when the web site already does that perfectly well? They just ignore most of what I say and keep pointing me to the stuff I've already read.
Ive also realised that the 'phone number they've given me to call is a premium number. This is where I draw the line I'm afraid. I refuse to pay Apple to tell me how I can connect to their store. I suppose I should be grateful Apple still allow me to buy music elsewhere.

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