Two workarounds and a solution for this problem.
Workaround #1: click the little X in the Now Playing window up at the top of the iTunes window as soon as the Store starts to load. It might take a few tries, but eventually you'll get to your iPod main screen.
Workaround #2: (for Mac users) use LittleSnitch to block outgoing connections from iTunes. You'll get a pop-up warning you that iTunes can't connect to iTMS, but after you click OK you'll be at your iPod's main screen.
Solution: downgrade to iTunes 7.5. I did this yesterday, following
this guide (Mac only) and while time consuming, it solved the problem completely.

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It works!! "Thank You".
It's wonderful we have some really nice people helping out on this forum.