My new ipod touch 4g doesn't let me download apps, it just says type in Apple ID password and when i do it asks for it again and again and again....

My new ipod touch 4g doesn't let me download apps, it just says type in Apple ID password and when i do it asks for it again and again and again.... what should i do?

I've got the same problem as well. When i connect all i see is "set up your iphone" screen. It worked perfectly fine a couple of weeks back when I last synced but, doesn't sycn anymore.
Any help would be appreciated.

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