Greetings Grandmaster Adam,
We understand that you're having an issue when trying to restore your iPod Touch to factory settings. The following steps may be able to assist you:
"Update or restore your iOS device without using iTunes
You need to use iTunes to update or restore your iOS device if you forgot your password and are locked out, or if your device is in recovery mode.
If that's not the case, you can update or restore without iTunes using these steps:
- Disconnect the iPhone, iPad, or iPod touch from your computer.
- On the device, turn on Wi-Fi. We recommend that you connect to a network, not a personal hotspot, when you download software updates.
- Update the device by going to Settings > General > Software Update.
If this doesn't fix the issue, go to the next solution.
Connect to the Internet and the iTunes Store
Open a browser on your computer and see if it can load a webpage. Then, try to connect to the iTunes Store.
- If you can't connect to the Internet, contact your computer administrator or Internet service provider (ISP) for help. Or, try a different computer or network.
- If you can connect to the Internet but see an error message when you try to connect to the iTunes Store, find solutions to possible iTunes Store errors.
- If you can connect to the Internet but the iTunes store shows a blank white page, identify and remove Layered Service Provider software.
If these solutions don't fix the issue, edit or reset your hosts file.
Edit or reset your hosts file
Your hosts file might block access to the software update server. Here's how to edit or reset your hosts file.
If you use a Mac
If you use a work computer, check with your computer administrator before you edit the hosts file.
- In Finder, select Applications > Utilities > Terminal from the menu bar.
- In the Terminal application, type the following command and press Enter to open the hosts file:
- sudo nano /private/etc/hosts
- When prompted, type your user password. Note that nothing appears in the Terminal window when you type the password.
- Use the arrow keys on your keyboard to move through the hosts file.
- If any line includes apple.com, add a number sign (#) and a space character to the beginning of the line.
- To save the hosts file, press Control-O.
- At the filename prompt, press Enter.
- To exit, press Control-X.
If this doesn't fix the issue, your security software might be out-of-date or misconfigured. You can resolve issues between iTunes and your security software."
More details here: If iTunes can't contact the software update server for iPhone, iPad, or iPod
If you continue to experience the same bachelor, we suggest reaching out to an Apple Authorized Service Provider for further assistance, You can connect with them here: iPod Repair & Service
All the best!