Im trying just that, i connected th iPod T via USB open itunes then open independence & the other way. And still have this message: Failure
Error registering for callbacks from iPhone I click OKd and start again and nothing.
Im ready to donate this iPod touch to WillItBlends.
Relax, friend. I had your exact same issue.
Plug your iPod into your computer. Let iTunes recognize it. Give it a few seconds.
Press and hold the home and power keys until the iPod disappears from the Devices list. The second it does, release the power button and continue to hold down the home button. You shouldn't see the screen turn on. iTunes will recognize it again, and say it's in restore mode.
Then, hold down option and click Restore, select 1.1.1 firmware, and restore.
It might take a few tries. Don't worry, it will work.