New iPod touch won't play songs or videos from iTunes!

Hello,
I purchased a 64gb iPod touch for my niece for Christmas.  We set it up and synced her library this afternoon.  None of the songs synced from iTunes will play (cover art appears but the song never plays - we have tried pressing pause and restarting, etc.).  Also, the iPod says it "cannot open" the movie we synced.  It will play one song that we purchased from the store using wifi (and will play that song instead of playing some of the other synced songs if you try to play them now). 
We have restored twice (once from a PC, once from a mac).  The same issue recurs each time. 
This is turning out to be a huge disappointment for her, so any suggestions will be appreciated!
Thanks!

Have you seen this?
iPod does not play content purchased from the iTMS.

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