The computer I am referring to is a Windows. However, when I use the same USB cord and plug it into a MacBook Pro, the ipod is recognized and the ipod recognizes the computer. Also, it gets charge from the Wall outlet as well.
Try this: http://support.apple.com/kb/TS1369... it should help.
empire_of_the_sun, the link you provided ois for other model iPods, not the iPod touch. You article refers you to:
If you have an iPod touch, see iOS: Device not recognized in iTunes for Windows.
Retrieving data ...