iPod touch Need itouch help!!

[tonylolz]

I have a 4gen itouch running 4.2.1.
Recently it was having problems so I decided to restore. I did the restore process in itunes. Now it is trying to finish the restore process (I think) and it needs to connect to the itunes store. I connected to the itunes store (by clicking the store button) but it won't connect as shown in picture.
Now my itouch is stuck on the screen shown. Hard reset and restore does not work..
What do i do?!

 

[pepi]

Appears it is something with your network. Do you have a firewall blocking? Are you doing this from work and did the first setup at home? Just a few throughts. Good luck

 

[tonylolz]

Appears it is something with your network. Do you have a firewall blocking? Are you doing this from work and did the first setup at home? Just a few throughts. Good luck

I have firewall turned off, i have done the flushdns cmd thing instructed from the apple website.
This is from my personal computer, which I had originally set up the iPod Touch.