Why isn't my iPod recognized?

I attempted to restore my iPod touch, I believe that it is an iOS 1.x (purchased in 2011). I have plugged it into my iMac and at first it recognized it with the serial number and now it only shows an iPod connected and serial number n/a. The iPod looks as though it is in recovery mode and the iMac says there is an iPod in recovery mode, attempts to extract the software and then it tells me it can't read it with error code 1. I have tried running all the fixes through the support to no avail. I do not want to have to replace the iPod yet. Any suggestions? Thanks!