Hey rocu,
Thanks for the question, and welcome to Apple Support Communities.
I understand your iPod touch is currently in recovery mode, and you are having issues restoring it. For information on recovery mode, see the following:
iOS: Unable to update or restore
http://support.apple.com/kb/HT1808
If you are having issues related to connecting to the update server, see this article:
iTunes for Windows: iTunes cannot contact the iPhone, iPad, or iPod software update server
http://support.apple.com/kb/TS1814
For other alert messages, see this article:
iOS: Resolving update and restore alert messages
http://support.apple.com/kb/TS1275
Thanks,
Matt M.