Recovery mode not working

I have an iPod that is in recovery mode. When I plug it into the computer it comes up with a message saying “iTunes has detected an iPod in recovery mode. You must restore this iPod before it can be used with iTunes.” When I restore it it goes through all the steps;

Extracting software, Verifying with Apple and preparing iPod for restore, Waiting for iPod, Verifying iPod restore, Restoring iPod software, Verifying iPod software, Verifying iPod restore and Restoring iPod firmware

Then it comes up with a message saying

Your iPod has been restored to factory settings and is restarting. Please leave your iPod connected. It will appear in the iTunes window after it restarts.

Then when I hit OK it comes up with a window saying

iTunes has detected an iPod in recovery mode. You must restore this iPod before it can be used with iTunes. Which just takes me back to the beginning.

Do you have any suggestions?

Thanks