OS4  update and connect to itunes

I have the latest version of itunes on my computer. I tried to update the software on my 3rd gen ipod touch to the OS4. Computer restarted automatically (presumably after install, but I wasn't watching it the whole time).
Now my computer and itunes won't recognize the ipod. I get a "new hardware" bubble that calls the ipod "Apple Recovery (iBoot) USB Driver". After that, a hardware installation box opens with, "The software you are installing for this hardware: Apple Recovery (iBoot) USB Driver has not passed Windows logo testingto verify its compatibility with Windows XP."
The cycle just repeats over and over and over again. The ipod just has the connect to itunes icon, and won't do anything else. I've tried holding the home/sleep buttons, and nothing happens.
Do I now have a $200+ paperweight?

Its been happening to a LOTTTTT of people, myself included! lol.
Apparently there's something wrong with the new Apple update, however Apple won't respond themsevles!!!
What i did was download and install iTunes on a different computer, then connected my Ipod Touch and restored and updated it. Then when i plugged it back into my own computer, it restored all my apps and music, and that seemed (at the minute lol) to solve the problem.
Hope that helps?

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