Hey guy. I did the same thing but used Iphone firmware on my Ipod and went through the whole night trying to get it to restore with no luck. After reading this thread, I connected to a PC and tried again no luck. I tried one more time and finally the ipod restored.
thanks guys could not have done it without you!!!
Question: Where do I get the Ipod touch firmware? I have it for Iphone but not Ipod?