Experiencing a "panic" Debugger Message!

I've seemed to get my iPod to work by factory reseting it each time this happens, but now it wont even let me do that, the debugger message is stated below, please can you help me. Thanks in advance.
p.s. The "P" at the botom "Panic" is highlighted

panic(cpu 0 caller 0x80015e59):
Debugger message: panic
OS version: Not set yet
Kernel version : Darwin Kernel Version 10
.4.0: Wed Oct 20 20:06:26 PDT 2010; root
:xnu-1504.58.28~3/RELEASE ARMS5L8720
iBoot version: iBoot-931.71.16
secureboot?: YES
Paniclog version: 1
Epoch Time: sec . usec
Boot : 0x0000000000 0x000000000
Sleep : 0x0000000000 0x000000000
Wake : 0x0000000000 0x000000000
Calendar: 0x0000000000 0x0002f08f
(A picture of the bottom of the Apple logo is shown here)
Task 0x818b6d3c: 233 pages, 9 threads: p
id 0: kernel_task
thread 0xc0202140
. kernel backtrace: c929bd
ec
lr: 0x80068ae9 fp: 0x
c929be28
lr: 0x80068ced fp: 0x
c929be28
lr: 0x80015d71 fp:0x
c929be74
lr: 0x80015e59 fp: 0x
c929be8c
lr: 0x801c8891 fp:0x
Panic: We are hanging here...uation:0x8