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If you're seeing a general error instead of being prompted by your computer to restore the iPod, try these steps:
Ensure that the latest version of iTunes is installed on your computer. You can get the latest version of iTunes here.
Reset the iPod. After resetting iPod, attempt to restore it in iTunes.
If none of these steps address the issue, your iPod may need to be repaired. You can arrange for service at the iPod Service Website.
You can find these steps and more information here:
iPod displays "Use iTunes to restore" message