New Touch won't install software update or complete restore

I have a brand new, just opened iPod Touch. I connected it to iTunes and when it found an update to the software, I told it to update. It downloaded just fine, went through everything, but when it got to 'installing software', it just did nothing. There was a small group of the green bars that moved across the progress bar, but the progress bar on my iPod hasn't budged. After 20 minutes of nothing, I tried a hard reboot to the iPod, rebooted my computer, and tried again. When I connected the iPod, I could see it said it had the latest version of the software on the main screen under the window that popped up saying I needed to do a restore before I could use it.
I tried the restore, but pretty much the same thing happens. Everything works fine, but it gets stuck on 'Restoring iPod software' with nothing happening on the iPod. It's been connected for over 40 minutes now with absolutely no progress.
I've verified I had the drivers and the newest version of iTunes.
If I unplug the iPod, I'm unable to even turn it off, it just is stuck on the screen with the Apple icon and progress bar. I never receive any sort of error message aside from the original 'restore needed' when first connecting to iTunes.
Please help.
Message was edited by: DakotaAngie

I see several people are having the same problem. There seems to be alot of problems going on with IPOD. Its a shame that you spend 200.00 dollars on something that has these types of issues right out of the starting gate.The Apple Support people with whom I spent 1 hour on the phone with finally told me to take it to an Apple Store and let them restore it.I suggest you trying to do the same.Merry Christmas!

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