Touch is completely froze. Just displays apple logo & busy signal

My son bought the Ipod touch 2nd generation from a friend and it worked great. The friend had a lot of personal stuff on it and just did a factory reset. Pressing and holding both the sleep/home buttons at the same time. Now it won't come back at all. All it shows is the apple logo with a broken circle on the bottom of the apple like its busy. Have tried everything need some advice thanks in advance. GH