It won't pick up that my iPod is connected to iTunes whenever I plug it in.
I guess you must change your usb connector cord... 🙂
Maybe:
Restore loop (being prompted to restore again after a restore successfully completes)
Troubleshoot your USB connection. If the issue persists, out-of-date or incorrectly configured third-party security software may be causing this issue. Please follow Troubleshooting security software issues. .
Next try placing in DFU mode and then restoring.
How to put iPod touch / iPhone into DFU mode « Karthik's scribblings
Last, try restoring on another computer.
I did the update to iOS 6.0.1 on my iPod Touch. Whenever it was finished downloading on my computer, I downloaded it onto my iPod. Then, my iPod said it had an error and reset itself to where the screen says, "connect to iTunes."
