So, i can say that you tried to restore to the newest software one time, and tried two times with an older software (which is impossible because apple stops signing them), then you came here because you just can't, am i right?
So, what is wrong? The problem is that the first time you tried to restore your ipod to the newest software, accidentally the ipod has been discconected in the procces of reset (believe me, that usually happens to me)
Do it again and check your Apple Charging Cable.
If that not happend (that probably not, haha) i have another theories.
Apple updates constantly their software for a better performance.
You can try this:
That should fix the problem and if not, try a complete uninstall of your itunes using CCleaner and install iTunes again. If all of above doesn't seems to work, try another O.S./PC.
You can only restore to the latestest iOS version for you model iPod. If you try to use an earlier version you will get the 3194 error.
For restore loop::
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 If the issue persists, out-of-date or incorrectly configured third-party security software may be causing this issue.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.
Then try restoring on another computer.
Last, make an appointment at the Genius Bar of an Apple store.