Have found this on the Apple Discussion Forum. Will try this when back home tonight:
Quote:
“10 Simple Steps To Fix Your iPod That Is Stuck In A Continuous Reset Loop:
1) While the iPod was resetting itself over and over (continuously resetting itself), press the Play/Pause button and the center select button simultaneously, for about 5 seconds, and it will display that it is now in disk mode.
2) Start up iTunes on your computer and then connect the iPod to your computer with the USB cable.
3) Click on the iPod in the left pane, select "Restore" to restore it to its original blank state. Follow the prompts to continue.
4) When the computer completes the Restore update, and it displays a message saying that the iPod will disappear and reappear in iTunes in a minute, immediately disconnect the iPod (unplug it from your USB cable).
5) On the iPod, you should see the main menu, in a few seconds. Pick a couple of settings to update for example the English language, and Eastern Time Zone (New York or Washington, DC), etc.
6) Press and hold the Play/Pause button to power the iPod off.
7) Re-connect the iPod to your comptuer with the USB cable.
8) Start syncing using iTunes, as normal.
9) All should be well.
10) Remember to always click on Eject in iTunes, and waiting for visual confirmation, before disconnecting the iPod.”