First off, this HOW TO will only help you restore to a working firmware. You won't be able to update to 4.0, but at least you'll have a working iPod touch/iPhone. If you're like me, you woke up this morning, all excited about the new Apple Software update; iOS 4.0. However, after you updated, you seemed to be stuck in a recovery loop. You couldn't restore to 4.0. After trying a plethora of options such as using iRecovery, etc. But I think I may have found a solution. 1. Connect your iPod touch/iPhone into iTunes. It should pop up saying it's in recovery mode. 2. Find the 3.1.2 (not 3.1.3) firmware for your iDevice on the net and download it. I'm not going to link you as it's illegal. 3. Hold down Shift and press restore and locate your 3.1.2 firmware file you downloaded and restore to it. 4. Wait for your iPod touch/iPhone to restore and pray that it works. It can't be guaranteed this works at all or for any other iDevices as this has only been tested on my 2nd Gen MB-based iPod touch. The reason I said not to use 3.1.3 was it wouldn't restore for me.