My iPod nano 3rd gen is stuck in a restore loop.

My iPod nano 3rd gen is stuck in a restore loop.  I have wiped it with Disc Utility and attempted to restore with iTunes, but there was no effect. I checked it in diagnostic mode against an identical pod and found no significant differences in the results, both checked out fine.  I know that this is not a windows driver issue since I use a mac.  In any case such an issue should have been resolved when I wiped the pod.  I have not attempted to load any music on it or sync my library, so a corrupted file seems unlikely as well. there is no water damage and the case is in excellent condition.  I have no idea whats wrong with it so any help or suggestions would be appreciated.

Hi clarity,
Welcome to Apple Support Communities.
You may want to first try removing and reinstalling the latest version of iTunes by following the steps in this article:
Removing and reinstalling iTunes, QuickTime, and other software components for Windows Vista or Windows 7
http://support.apple.com/kb/HT1923
If you continue to receive the error message when connecting your iPod, see this article for more troubleshooting tips:
iTunes for Windows: iTunes cannot contact the iPhone, iPad, or iPod software update server
http://support.apple.com/kb/TS1814
Best,
Jeremy

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