Stuck on "signing in..." frozen there

My daughter just received her brand new iPod Touch 4th generation, 16 GB yesterday. While we were working through the set-up process, after I had typed in the correct Apple ID and password, the iPod became stuck on the Apple ID and Password page and keeps grinding away there with the message "Signing in..." When it goes to sleep, and we turn it back on, it's still stuck right there.  I can't get it to clear the message or navigate away from that page.  SOOOOOO disenchanted with Apple right now that it isn't even funny.  My daughter worked so hard to save her money for this, and she SHOULD have been able to use this when it arrived yesterday, but thanks to this glitch she couldn't.

Try:
- Reset the iOS device. Nothing will be lost
Reset iOS device: Hold down the On/Off button and the Home button at the same time for at
least ten seconds, until the Apple logo appears.
- Restore to factory settings/new iOS device.
iTunes: Restoring iOS software
If still problem, make an appointment at the Genius Bar of an Apple store since it appears you have a hardware problem.
Apple Retail Store - Genius Bar          

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