Stuck on "Setting up Apple ID" on ipod touch

I give up I have been at this for the past day. This is my first time with an ipod touch I have had the first gen ipod and nanos before. But this is my first equipment that requires a wifi. Currently its stuck in "Setting up Apple ID" tried through wifi and connected directly to my PC (only apple product I own is ipods) and nothing.

Tried leaving it off for 10 minutes and turning it back on ... same

Tried skipping and going through wifi ... same

I somehow managed to get an update through my itunes at some point I think, but it won't pass the setting up Apple ID message. I have restored it in the past hour but nothing. Every time I connect to my PC I see the info of the ipod but it will not let me skip the apple ID part. I am at my wits end really this is turning out a very bad experience.