I jailbroke my touch and it won't sync with itunes. My ipod worked fine until I plugged it in and Itunes knew it was there but didn't say the name, it just said Ipod and the other info said N/A. Itunes said it was in recovery mode and I needed to restore it but it wouldn't work. I clicked restore and update and updated my ipod software. I also got the latest itunes, and it still won't restore. I get error 1603 and I turned off internet security programs but get the same error every time. Whenever I turn on my ipod it shows a usb cable and itunes, and it won't play music or anything.
If your iPod is stalling without an error then that is a completely different issue all together. Are you getting an error? or is it just not finishing?
Ok.. So if you created a new user and you got the same error, then we know we have a system issue. You are going to want to follow the steps in http://support.apple.com/kb/TS1275?viewlocale=en_US first to make sure it is not something as simple as a bad cable. If all else fails, try restoring it on another computer all together. If memory serves me correctly, the error 1603 results from a timing error between the computer and the iPod, if that timing is off, then the iPod is not going to restore. Firstly be certain that you are not connecting to the front of the computer (if it is a desktop).