iPod 1st Generation Touch- System Restore from Recovery Mode

My iPod Touch 1st Generation worked fine one day and the next day all it would do is disply the little white "Apple" and then go black. It was fully powered. I opened my Itunes account and connected the iPod. Nothing. Then I saw on a previous discussion board to hold the power and home button at the same time while hook to my computer. A graphic of the usb cord and Itunes appeared, and the Itunes account recognized the device but said it was in "Recovery Mode" and in order to have it work again I would need to allow for a system restore. So I did. It seemed to go through the process and then tried to re-sync. It has now been "syncing" for over an hour. It is stuck. I can not do anything, even if I disconnect the iPod from the computer. I have no idea what to do, I am super frusterated. My iTunes account seems to be locked and have not made any progress with the iPod of getting past any other graphic other grapic besides the usb/iTunes picture. Please help if possible.

Also, since it is a 1st generation, I recently upgrade the OS to the only allow upgade however, I am not sure which one it was. This is the first problem I have had with my iPod. Apologize for the lack of specifics.

Thanks much in advance.