tiffernuggets14, place the iPod into recovery mode. Follow this link then try to recovery through iTunes. If that does not work, place it in DFU mode and restore. Step 1: Turn off your iPod touch completely and connect to your computer.
Step 2: Hold down the Power button for 3 seconds
Step 3: Without releasing the power button, also hold the Home button for 10 seconds
Step 4: Without releasing the home button, release the power button and keep holding the Home button for 20 seconds.
itunes should identify that you are in DFU mode. Restore from here. You will lose your information, unless you are using the same computer all the time. If that does not work, I would most certainly explore the option of getting it repaired/replaced under warranty. Hope this helps, good luck.