...you rebooted your computer? And the reboot disrupted the task? (just thinking out loud)
Are you able to charge the Touch's battery off either computer's USB ports? Do you have an extra connection cable around to try? In the past I've left devices plugged into the computers we have and along the way they endured reboots/shutdowns-restarts of the computers and so far never experienced anything like what you've described.
I've recently had a problem where my iPod touch isn't being recognized by my computer at all. I accidentally forgot to unplug it when I restarted the computer, so maybe that could be the problem, but I'm not sure. It's been happening ever since though. I've tried reinstalling iTunes, resetting the iPod, and updating drivers but my computer doesn't even recognize that it's plugged in, so it doesn't show a drive. It charges fine in an AC wall outlet, but my computer doesn't see it at all. I even tried connecting it to another computer, and still the same problem. Even putting the iPod in recovery mode didn't do anything. I'm running Windows 7 64-bit on one computer and Windows XP Professional Edition on the other. HELP!

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