1. Disconnect the USB cable from the iPhone or iPod touch, but leave the other end of the cable connected to your computer's USB port.
2.Power off the device (Press and hold the Sleep/Wake button for a few seconds until the red slider appears, then slide the slider. Wait for the the iPhone or iPod touch to turn off.
3.Press and hold the Home button while reconnecting the USB cable to iPhone. When you reconnect the USB to iPhone, the device should then power on.
4 Continue holding the Home button while iPhone starts up. While starting up, you will see the Apple logo
5 When you see "Connect to iTunes" on the screen, you can release the Home button and iTunes will display the recovery mode message
6 Be prepaired to loose every thing on your ipod if you choose to do a recovery.
Julian, November 2009