To begin with, make sure your iPod is completely off. Then, make sure your iPod is completely turned off. Plug in the USB into the iPod, and hit the home button for about 5 seconds until the Apple logo shows up, and a screen comes on having the iTunes logo, and the part of the USB that gets plugged into your computer comes up. Then, iTunes will show up with the message saying that there is an iPod plugged into the computer that is in recovery mode, and it must be restored, so then you hit restore, and it should be restored.
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IF it says i pod is disabled, connect to i tunes. then simply connect your i pod to your i tunes account and press "restore". it will fix it but erase all data... but it will recover your data, so dont worry. :)