This has happened to me before.
Click the Waiting app so it pauses it, and shut off your ipod using the home+power button method. Wait the minute for it to start back up, and when it connects, it should ask you for your itunes password. Enter it, and put your iPod down and wait.
One time I had this problem which lasted for a week. Turns out it was a glitch in the program, and was fixed after an update of the waiting app.
Good Luck