"Ipod software update server could not be contacted": Ipod Restore

When I was trying to update software on my 4th generation Ipod Touch, the screen froze with the 'connect to Itunes' image (i.e. the Itunes logo and the USB). The screen has been frozen that way since and consequently, I have tried to restore my Ipod.

I have uninstalled and installed the latest update of Itunes; updated Windows; re-started my computer numerous times and tried holding the power off/home buttons down together. When Itunes loads, I always get the option of restoring my Ipod however once it has finished extracting software, it says "it cannot be restored at this time because the Ipod software update server could not be contacted or is temporarily unavailable".

Therefore, I was wondering if anyone can provide any help in terms of what to do as I am really stuck :/

Thank you!