Ok so I have an iPod Touch 32GB 3rd generation. Now I REALLY wanted to ugrade to ios 4.0. So I plugged it in and it downloaded the update. So I then had to restore, so it went through it's process. During the restore process, it stayed at the "Preparing iPod for Restore" loading screen for like 10 minutes, then went to "The iPod could not be restored (1603)". Now I'm really starting to get f*ckin pissed cause my iPod's stuck like this. I tried restarting the PC (windows Vista) and also switching USB ports. No luck. Help please!
If all else fails then you might have to delete and install iTunes again. (And yes, all your app, music, whatever data will still be there).
Why don't you press the home button and power button at the same time and hold it like that for 15 sec