Ok, so.. I updated to Itunes 10 two days ago so that I could upgrade my itouch. I successfully updated itunes and went on to upgrade my ipod. It went through the whole process as usual but when everything was finished I took my ipod off the USB cord the symbol came on the screen saying I needed to connect it to Itunes.. so I did. Then it came up with the error 1604. I found a video on youtube showing how to fix it so I tried that and it didn't work. Then I tried uninstalling itunes and reinstalling it. That didn't help either. Now what happens is my ipod tells me to plug it into itunes and when I do it says its in recovery mode and whatnot. When I click the restore button, Itunes says it will restore and update my ipod. When I click that, it starts downloading the upgrade and then the window pops back up that says something like "itunes has detected an ipod in recovery mode, blah blah blah.." and the whole process starts again. Wtf. My ipod was working just fine before I updated itunes... PLEASE help me. I don't have $100 to spend on a new ipod right now..