HT4972: iOS 4: Updating your device to iOS 5 or laterLearn about iOS 4: Updating your device to iOS 5 or later
Currently Being ModeratedJun 20, 2012 11:27 PM (in response to kwalsh6972)
Connect in recovery mode, explained in this article and restore.
Since the update stopped, the data on the iPod is lost. But all your purchases can be downloaded again for free:
They should also be part of the iTunes library on the computer you usually sync to.