iTouch is in recovery mode, and windows cannot update software!?

Will1

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so i got a 32g iPod touch last night, put on a bunch of CDs using iTunes. and now the iTouch screen is stuck showing the USB cord pointing towards iTunes(Recovery Mode). and when i plug the iPod back in, a screen pops up saying "Found New Hardware" with the option saying Locate and Install driver software, but windows cannot find the driver! anyone have a solution to this problem?

Already have uninstalled, and reinstalled all of iTines/ Apples programs.
 
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