Upgrading my iPod 5 Touch to iOS 7.1.1 w/o enough memory for (2.1GB software upgrade), now iPod stuck!

Tried upgrading my iPod Touch 5G today to iOS 7.1.1 but didn't realize that I needed 2.1GB worth of needed internal memory for this update. I only had about 800MB of unused memory in my iPod 32GB Touch 5G before starting the iOS 7.1.1 download.
So now, when it turns on, I only see a white Apple lightning cable with an arrow pointing to iTunes icon.
I plugged the lightning cable into the computer and after the driver loaded up iTunes, I was told that my iPod was in 'Recovery Mode'?
It said if I wanted to restore my iPod, I needed to restore it to it's factory settings which erases all my data, apps, music, texts, settings, pictures, videos, EVERYTHING!!
Is there a way for me NOT TO LOSE EVERYTHING NOW???????? If I do go through with restoring my iPod, can I retrieve all my PHOTOS and VIDEOS I have stored on my iPod?? along with my texts, iMessages, emails, etc???
I read I think that after iTunes deletes everything and then updates to (iOS 7.1.1), it give's you the option to install back what was once on the iPod (because Apple supposally saves everything before deleting everything in order to install new iOS????)
HELP ME GET BACK TO WHAT I HAD BEFORE I TRIED UPLOADING iOS 7.1.1 (believe I was using iOS 6.(?) before this 'distaster'.
Thanks for any help in advance!!!!!

If one of these programs will not kick the iPod out of recovery mode
For PC
RecBoot: Easy Way to Put iPhone into Recovery Mode
or
http://joshuabailey1997.wordpress.com/2010/09/02/recboot-v1-3/
If necessary:
Download QTMLClient.dll & iTunesMobileDevice.dll for RecBoot
and                                           
RecBoot tip
RecBoot may have problems on 64X windows, then try:       
Tenorshare ReiBoot – Enter & Exit iPhone, iPad, iPod Recovery Mode with a Single Click
For MAC or PC       
The Firmware Umbrella - TinyUmbrella
Installs blootware on PC too
You will have to restore via iTunes
For how to restore:
iTunes: Restoring iOS software
To restore from backup see:
iOS: Back up and restore your iOS device with iCloud or iTunes       
If you restore from iCloud backup the apps will be automatically downloaded. If you restore from iTunes backup the apps and music have to be in the iTunes library since synced media like apps and music are not included in the backup of the iOS device that iTunes makes.
You can redownload most iTunes purchases by:
Downloading past purchases from the App Store, iBookstore, and iTunes Store        

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