My ipod touch ran out of charge and when i connected it to the computer it gives the error 0xE8000065. The ipod shows the connect to itunes screen. I have tried restarting both the ipod and the computer and have connected it to different computers.
Did you try to uninstall iTunes and reinstall it and see that it does. The other thing you can try is taking it to someone else computer and seeing if you have the same problem. That will tell you if it is a iTunes problem or your system. If the other person has a itouch see if you can use their cable as well to rule that out.
Also how long ago did you get it, most apple stores will help you get it working again.
Did some Googling and other people that have gotten the same error code usually fixes it by a simple computer restart. Maybe its your iPod? Did you try to sync other iPods?
Its sounds to me that it has to be your iTouch. If you have already tried other computers then you know its not iTunes or resetting your system. Making sure you let them know everything that you tried and see if they will try to sync it right there in front of you... Good Luck