iPod touch Restore Code 40 Error --Help please!!

[pandaw]

My iTouch displayed cable and iTunes so I connected and was told to Restore, this failed with error code 40. I got to the iTunes Restore log and low down on that was a line: NAND driver status failed.
Does this mean I have a hardware failure, can anyone suggest any possible solution?
Thanks

 

[Mr Slippy IV]

As best I can tell, your iPod has a hardware problem. Return it to the store if it's in warranty.

 

[pandaw]

As best I can tell, your iPod has a hardware problem. Return it to the store if it's in warranty.

Unfortunately it is 3 months out of warranty.

 

[Mr Slippy IV]

Unfortunately it is 3 months out of warranty.

Call Apple. If you talk with them for a bit you might be able to get AppleCare still. That could dramatically decrease your replacement expense.