Tried to restore my iPod touch, it now shows the 'connect to itunes' graphic on the screen but nothing happens when I do

I basically restored my iPod to start my music collection from scratch because I got a new PC.
I plugged the 32gb iPod touch into my PC and the USB connection sound went on to indicate that it is connected to the PC but the 'Connect To iTunes' graphic is on, even when it is connected to the PC and iTunes is open it doesn't show any devices connected. After a while the iPod shuts itself off, and when I turn it on again the same thing happens. Graphic. Not found in iTunes. Turns off. I think but I can't remember if I updated the iPod's operating system prior to the restore (this all happened 2 weeks ago).
I'm not sure of the model/generation of the iPod. I got it brand new for Christmas of 2009 in Australia.
Any help would be appreciated!

Try here:
iOS: Device not recognized in iTunes for Windows
Also include manually placing the iPod in Recovery mode and then try a restore
Then try DFU mode and restore.
How to put iPod touch / iPhone into DFU mode « Karthik's scribblings
Further, try another computer to help determine if yu have a compter or iPod problem.

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