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When your iPod Touch is stuck in recovery mode, you can use the iTunes application to restore it and update its software. The application uses your backup files to get your iPod out of recovery mode.
If that doesn’t fix it, Matt over at Crunchgear has a solution that’s almost as easy. All you need is to open up an iPod and shove a folded-up business card inside the case.
If you get the dreaded "iPhone disabled" message, don't be filled with fiery dread. There is a way you can fix it. Just, for the sake of avoiding future headaches, backup all your information ~now~.