The latest software update disabled my iPod.

When I updated my 5th gen iPod to the latest software update (7.0.4 I think) ,it was supposed to show me my lock screen when it was done downloading the software.Instead it showed showed me a graphic telling me to connect my iPod to iTunes on the computer. I did that. But it told me to restore my iPod. I was a little mad, but I love my iPod and figured I could just download from my iCloud backup when I was done. When I clicked through all the terms of use and such it told me it could not restore my iPod because the data was corrupted, it told me to disconnect and try again. I did that and still got the same message. HELP!!!!😢