Restored to get iOS 5, it says "connect to iTunes", but I already restored it to my previous settings from iTunes. It won't let me do anything! Help?

I restored my iPod touch 4G to get iOS 5, I want to restore it to my setting's I had before, so I selected "restore from iTunes backup" on the ipod. "connect to iTunes" on the new set up screen on the ipod. But I already restored it to my previous settings from iTunes. I have tried connecting it and re-syncing it. I am completely lost on what to do.  It won't let me do anything! Help?
Thank you!

Try close all apps in multi-task window
1. Double tap the home button to bring up the multi-tasking view
2. Swipe the app's windows upwards to close
3. The app will fly off the screen

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