iPod Nano / RESTORE message in iTunes

Mates;

Its regarding my iPoad nano (16GB, 4th/5th Generation, Model A1285, Version 1.0.4)

When I connecting in to laptop (Windows XP)..iTute showing following pop up window .. "iTune has detected iPod in recovery mode. You must restore this iPod before it can be used with iTunes" (iTune version: 10.7.0.21).

I did click Restore iPod, however that delete all songs which were in my iPod before and whenever I'm connecting it to that laptop..iTune pop ups with same error message about "Restore"

Please help me through.

Cheers;

Ravi