1- Click Start, programs, accessories, and lastly "Command prompt"
2-Type in "netsh winsock reset" without the quotation marks, then hit Enter, close everything and then reboot your computer.
3- Open iTunes...Connect ipod to your computer via the usb cable.
4- Put your ipod in recovery mode: Press the Power and Home button simultaneously and wait for the apple logo to appear on your ipod. Once it does, release your power button but maintain a hold on your Home button until a usb cable appears on your ipod.
5- You should see the option update and restore, so you click it, and you're off to the races.