USB cable and itunes icons on screen

8gig ipod touch. Windows NT??? (don't know how to find the system). Touch was working fine. Now it shows an icon of a USB cable with an arrow pointing towards the iTunes logo. It seems to be saying, plug into itumes. I did. It says the ipod is in the middle of a reset and tells me to update firmware, then click the restore button in iTunes. Did all that. I still just have the icons of the USB cable and an arrow pointing to the iTunes icon.
I'm stumped. any help will be greatly appreciated.

Thanks for replying.
I did the pwr & home button. Screen goes blank, then an apple logo, then the same USB cable icon to the iTunes icon. It seems to be stuck in the middle of a major function, it's looking for itunes, but when it finds it, itunes can't quite finish the proceedure. Very curious.

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