iPod touch Itouch stuck in Recovery Mode!!

I have an itouch, 2nd generation, that has been stuck in a recovery cycle. I tried to update to the new software for itunes 10, and it hasn't been the same since. I've tried iRecovery, but I can't understand what libusb means or where to download it. I've tried iReb, but libusb is required for that as well. I've also tried to uninstall and reinstall itunes, but nothing seems to help.

When it's in recovery mode it goes all the way through the process of actually restarting the ipod only to restart to the recovery mode!

Does anyone have any suggestions, or can clarify libusb, irecovery, or ireb? any help would be soooo grateful!

I think I'll just put it in a corner for a while and try not to think about it... but thanks anyways