Without more information like what exactly happens when you try to restore (error messages?) all I can suggest is:
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 If the issue persists, out-of-date or incorrectly configured third-party security software may be causing this issue.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.
I have not seen a solution for that error but try:
- Place the iPod in DFU mode and then restore
- Try on another computer
- If still not successful that usually indicates a hardware problem and an appointment at the Genius Bar of an Apple store is in order.