my ipod cannot be restored because it contains files that are in use by another application.

I had this problem on a Nano Video. I found an easy solution. Put the ipod in disc mode. (Press and hold menu + select. When the screen goes blank press and hold Play + Select.) With the ipod connected to your windows computer find the ipod in My Computer and right click it. (It will show up as a disc with your ipod's name.) Select Format and click through the warnings. It will ultimately reformat and erase it completely. Unplug the ipod and launch itunes. Connect the ipod. You will get a message in itunes saying that the ipod needs to be restored. Click the restore button. The ipod will restore to factory and then update to the latest software. From here you should be all set.

Disconnect the iPod and then try connecting it again. Better still, re-start your computer.

A re-start of the computer will end all the programmes that are running when you close it down. So in theory, if you connect the iPod to iTunes first thing after a power on, there should not be any other programmes trying to use the files.

Typically, what happens is that another programme on your computer is doing something with a file (a song or even a picture) on your iPod, but the programme doesn't end the task fully - continuing to tell other programmes (such as iTunes) that it is still using the file.

Hence the message you saw. It may even be the anti-virus programme runnin g and trying to check the files on the iPod. It's often difficult to work out which programme is the culprit, but anti-virus is common.

Not really. I still think it could be your anti-virus software, but I'm not an expert on this.

In my case it was the anitvirus software.

Thanks!!!

You are a genius. Thank you!