On the ipod touch the itunes icon comes out and is a usb cable with an arow pointing to the itunes icon

This usually means you need to connect your iPod to your computer and open iTunes. You may need to restore the iPod to original settings in order to fix.

Hold down the sleep/wake button on the top of it for ten seconds. Plug it into your computer it should say "iTunes has detected a iPod in recovery mode" It should then give you a button on your computer allowing you to restore.
Also make sure you have the newest version of itunes installed on your computer.
Please let me know if you need further help.

plug the ipod into the computer and open up itunes

Connect your ipod to computer with usb connect cable to sync with itunes.

you will need to attach it to your computer and reset it using itunes.

you connect the ipod to itunes. unless if it is the ipod side of it. then you have to connect it to itunes and restore the ipod because it is in recovery mode.

Plug it into your comp. iTunes should recognize that it's corrupt. From there, it should attempt to restore the iPod. This wipes the whole thing, and restores it to its original format. Good luck!

get itunes 8.0 and sync it and then you can use your ipod touch

frist of all check if there is a new update for itunes and if there is download it and install it that might solve ur problem but if it doesnt let me know.

make sure you're USB is unplugged. when you're at the screen with the itunes symbol and the usb arrow, hold down the home and sleep button until the screen goes black, at this point, keep holding for another 10 seconds. at this point your screen should look black as if the ipod is off. connect to the computer and itunes shoulds show a message like "itunes has just discovered an ipod in recovery mode" you'll be able to do a restore and regain use of your touch.
if this does not work, message me back.