Help error 3259 not making any sense to me ..... advice needed

Hi there, my IpodTouch has been freezing up and no opening apps and its really getting on my nerves , no idea why its doing it, anyways, I have been trying for two days to reset my IPOD to factory setting in thehop that it will help , so i tired to reset but everytime i try and reset it keeps trying to updadte my ipod to version 2.2.1 .. which i already have - so i click ok to update, as it wont let me reset with updating ?? but it gets half way through and it just times out with the error code 3259...... I have google the error code and done all the tings suggesed , update itunes, turn off firewall blh blah blah but still it wont update, but the problem all I want to do is reset to factory settings, so please could soomeone tell me what on earth is going on... I just dont understand it and is there a solution...

Many thanks

sambolina