Ipod wont restore

If you have a 3rd Generation Nano and you are using Windows 2000, it isn't going to work.

Do you have iTunes 7.5? What happens when you try to Restore?

mine also dose that but mine all it dose is has an apple sign and i dont know how to restore because it's says that it is not in database and i have seril number.
so please help me.

Same problem with me also. Happened after i downloaded new version of itunes. Only displays the connect to computer message and restore message and will not do anything else. Connected to computer and went throught the restore steps but it just asks to repeat the steps. Did this a dozen times. I tried downloading the new itunes again and formatting via Windows and still nothing. Very frustrating!

Could this be a bug in new version of itunes that causes this or just a coincidence?

I have the same problem with message: iTunes has detected an iPod in recovery mode. You must restore this iPod before it can be used with iTunes". I purchased the 8G version November 11, 2007 from Best Buy and it successfully worked for three weeks until for some reason the battery died last Friday and when I went to recharge it, it would not longer sync to iTunes. I spend several days following at the instructions on the Apple Help sites, uninstalling, reinstalling iTunes several times, following all the instructions for "My Computer" system checking, etc. In frustration and not knowing what to do next I returned the iPod to Best Buy and they gave me a new one. I am still experiencing the same problems. It won't recognize the iPod on iTunes after I plug in the USB. I have no idea what to do next???
Do the Apple technicans read these postings??? Need help - thanks!

Having similar problems...loaded Itunes 7.5 and tried restoring on two different computers. After supposed restore, ipod indicates no music or other content, yet says it is half full (8 GB Nano 3 drd Gen). I am going through withdrawals not having ipod for several days now...shouldn't be this hard.

Mine won't restore either. I am trying to restore it because my iPod won't even play the songs! So when i try to restore it says: The Ipod cannot be restored because it contains files that are in use by another application. I am on a family PC and am not sure what this means! I am not sure what generation my ipod is either I just know I got it at Christmas last year (2006) does that help??

I had the same issue. It was conflicting with a network drive (g: in my case). Try this:
http://docs.info.apple.com/article.html?artnum=93499#changedrive

In my case I did not have to restart the computer, I only unplugged the ipod and then plugged it back in. Your mileage may vary...