iPod in Recovery Mode

I have an iPod 2nd generation in Recovery Mode. When connected to iTunes, it syncs but will not download until iPod is restored. Attempting to connect results in "The iPod software update server could not be contacted" message. Attempting to update version of iTunes gets similar message. I am using Windows 7, I have tried resetting of my network settings, and turned off all firewalls to no avail. Help!