try restoring on a different computer. If that doesn't work, then it must be a problem with the iPod. I don't think it's advisable to poke around on the inside of an iPod, due to the small/delicate construction of the device. So, I'd take it to Apple. Is the iPod under warranty? If so, then definitely take it to apple.
I have done everything I know to recover my iPod Touch and it just doesn't work! It goes through Recovery and says that it will take a few minutes to restart my iPod, and I see the iPod screen with the Apple logo and the download bar filling up and the spinning circle and then it just goes black and the window in iTunes comes back on, saying that my iPod needs recovering. Also, neither the start button or home button turns it on...it remains dead and dark! I can redo it all day long and it never recovers! And yes, I have re-downloaded iTunes, so I have the latest version and I'm sure my computer and the iPod are communicating, otherwise the iPod wouldn't do anything. I connect by USB, and yes I checked the COM Ports. This whole mess started when I noticed that my computer was not recognizing the bluetooth signal from my iPod anymore, so I checked that the Bluetooth enumerator was on and working and my computer said it was and I have the latest drivers. So I did a wipeout and then tried to do the recovery, and here I am today! Do iPods have lithion batteries? And if so,can they be replaced? And if it is a battery problem, I wouldn't get anything on the iPod screen,right? So that can't be it... Please,what can I do to to fix this?