restoring

"and it says you can resotre by right clicking on you iPod name in left panal of iTunes...

I don't know where you read this but you've got the wrong end of the stick somewhere. You can get instructions on restoring here: Restoring iPod to Factory Settings

I'm not sure that's how you even restore your iPod (how you describe through iTunes).

Does this article explain how to restore? -> Restoring your iPod to Factory Settings

Also, your iPod may have been frozen up, and simply needs a Reset. You may not have to restore your iPod (maybe only needs a simple reset) to prevent this error message from displaying.

-Kylene

Have a look at this troubleshooting article: iPod shows up in Windows but not in iTunes

How do you reset the mini?

My ipod has frozen. Won't show up in windows or in itunes.

To Reset your iPod, hold down the MENU and SELECT (centre) buttons for five or ten seconds until you see the Apple logo appear then the menu button to go to the normal display. Once you've done that, if everything is working again, have a look at this troubleshooting article: iPod missing in My Computer and in iTunes

I'm having the same problem! It's asking me to restore my ipod in order to show up in itunes 7, but don't know how to restore without it showing up in itunes!!! This is frustrating!
Have you found a fix yet??

I updated my ipod video to 1.2, after that i tried to put somesongs on it and it erroredm all ny songs got deleted. so i plugged my ipod back in to put the files back on and itunes7 says it can't read my ipod and need i need to restore it, but the ipod doesn't show up on the itunes dock so i can restore it, i dont know what to do, please help.

Ok, I fixed my ipod/itunes 7 problem. I'll try to explain what I did...

First I did a system restore on my computer to before I installed itunes 7.

Then I uninstalled ipod software and reinstalled using the CD that came with my ipod. After doing this, I was able to restore to factory settings by going to start...all programs...iPod...iPod updater (for the date that was original to my CD)...and from there I restored to factory settings.

Finally, I installed iTunes v. 7 (because when I did a system restore and tried to open my old iTunes, it said some files was missing and it wouldn't open).

After installing iTunes 7 I got an error message (-200) which was easily fixed by uninstalling and reinstalling Quicktime.

Then...iTunes v. 7 finally worked while also recognizing my iPod.

Don't know exactly which of these steps actually made it all workout. Perhaps you can skip the system restore and just do the uninstall and reinstall of iPod using the disk, then go about the restore as I described to fix the problem. Don't know. Maybe it was just luck and a big headache. 🙂

Good luck!