Whenever, a situation as such is faced when your ipod touch turns to recovery mode and does not restore to normal mode, however so hard you try, it is most likely to be the impact of severe errors post firmware upgrade, this is the time when it is outmost importance to have the ipod restored and ipod touch file recovery done with the help of backup, if not recovery utilities may also be opted for.
Answer to: iPod Touch stuck in recovery mode. iTunes won't restore.