Nano Gray Screen of Death

At first my iPod would not turn on. I connected it to the computer and iTunes opened and immediately said I needed to recover it. It downloaded the software and went through the process. My ipod, while plugged in, turned on and the screen was a solid gray. Immediately after the recovery, another itunes window popped up and again said it needed to be recovered. The whole process restarted and had the same result. I then unplugged it and tried to reset it. The gray screen went black, and the ipod was dead again. The apple logo didnt even appear. I then got it back to the gray screen by "recovering" it again, and let the ipod lose all its charge before plugging it in again to the same result. Is there a way to fix this? What's going on?