TS1368 Done all of the above...everything is in order, still cannot connect to the store.  I have the 5th gen iPod and $50 iTunes gift card.  I am going to return both of these items it I cannot find a fix for this.

Make sure that you can access the Internet on your computer or device.
Make sure that your computer meets the iTunes minimum system requirements.
Make sure that your operating system is up-to-date:
Done all of the above...everything is in order, still cannot connect to the store.  I have the 5th gen iPod and $50 iTunes gift card that I cannot use(been trying now for 6 days).  I am going to return both of these items if I cannot find a fix for this.

When I called Apple (after wating 42 min. for a live person) I was told to run the APPLE Software Update and turn off location services then restart my computer.  There were no available updates. The iPod touch I got on Christmas day.  The iTunes app was downloaded the same day.  Since day 1 I have not been able to connect.  I also followed lllaass's advice and followed instructions on the following 2 websites.
http://www.idownloadblog.com/2012/09/20/fix-for-cannot-connect-error/
http://www.youtube.com/watch?v=PIUitRyZS6U
After restarting my computer:
From the iTunes app I click on the 'iTunes Store'
A new window opens and I get the following message:
This Apple ID has not yet veen used with the iTunes Store.
Please review your account information
So I click on 'Review' and am taken to a crude screen that says
Welcome to the iTunes Store
With an Apple ID, you can download the latest music, videos, and more.
To begin creating your Apple ID, click Continue.
So I click on 'Continue'
A pop up window says:
We could not complete your iTunes Store request. An unknown error occurred (-1202).
There was an error in the iTunes Store.  Please try again later.
And the only option I am left with is to click 'OK'
After every fix this same scenerio just loops and loops and loops

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