MIssing media and error 1612

Hiya, I've had my Touch for a month now and it's been working great till recently. I was on vacation, listening to my podcasts and all was fine. I shut the Touch off and put it in my backpack. Later that night I took out my Touch again and all my Music/Video/Photos were gone. If I go into the Settings/General/About it says those 3 items are 'Loading' and never changes (all pics are available for wallpaper change, odd). When you select one of the three icons, Music, Video, Pics you get a blank screen and eventually go back to the Application screen. The Touch acts slugish for a minute or so after that. Reseting did not help.

All my applications are available and work perfectly.

After I got home I connected my Touch to iTunes and it reported that "iTunes cannot read the ipod' and to go to the Summary screen, download and program in the Factory Settings. I did that but it didn't help because iTunes reported an unknown error 1612 in connecting to my Touch.

Luckily it's under warranty but it's a PITA to send back to be fixed due to my APO AE address.

Any suggestions? Cheers!