Ipod wont stop saying "connect to itunes"

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 If the issue persists, out-of-date or incorrectly configured third-party security software may be causing this issue.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.

Hi josh

This is a very simple solution but not when you don't know how basically it is either you lead or you pc when you go to restore it does it get half way and start making sounds like you are connecting it and disconnecting it if so LEAVE IT I have found that out the hard way after that it will go strait though with the process.

Here is my solution although I'm a 4th gen so it might not work: If you have a Mac, plug in the iPod there. iTunes will be more able to operate on a Mac OS. Plug it in and do recovery mode or restore to factory settings and just leave it. Downloads and restorations vary greatly in time depending on what operating system you have and what is being downloaded or restored. Just click ok when a notice pops up. Some downloads or restorations take as long as four days so don't freak about it taking forever because a few days of waiting is a simple trade for months and possibly years of iPod usage. It would help if I knew your memory amount and how much is being used, because maybe the restoration can't be completed because the iPod would have to download a wipeout program. Tell me if I helped! @iPodLuvsApps IPod touch tech specialty! (Actually I'm just running off of experience and the Internet)