If you are an iPod Touch/iPhone user then yes there are lot of ways to get you out of the dreaded recovery mode including iBrickr, iFuntastic (Mac) and others but I am not here to talk about the iBrickr or iFuntastic but with only your iTunes and a little bit of command prompt. For Windows XP user you might need to download diskpart utility for this to work.
Download diskpart here (Not required for Windows Vista or above user) Also I have to warn you, use my method only if everything else fails. And I think it is not necessary to mention you that all of your iPod contents will be lost in the process.
Ok so let’s get to it. Sometimes there comes a day when even if you try to recover from iTunes you keep getting stuck in that same Recovery Mode. iBrickr does not detect your iPod then you know it's time for some brute force method to your iPod.
Follow the procedure below and comment on any problem you faced:-
1)Goto Start and type "cmd" if you are in Windows Vista and if you are in Windows XP then type it in run command.
2)After reaching to the command prompt type "diskpart" (Mind you that if you are in Windows XP or if you don't have diskpart utility installed in your computer then you are supposed to install it and only run diskpart)
3)Once you are in diskpart type "list disk" without the quotes.
4)Diskpart will display all the disks you have plugged in your computer. Find out the one which your iPod is and type "select disk 1" In my case my iPod was disk 1 hence disk 1 if your iPod is disk 2 or anything else you should do so.
5)Then type "list partition", your iPod should have only one partition called "partition 1"
6)So now type "select partition 1". Diskpart will display that your partition is selected.
7)Before following this process make sure you selected the corrected disk while doing list disk or else your disk will be completely wiped. Ok I'll assume you selected the disk that relates to iPod.
Now type "clean".
8)After cleaning type "create partition primary" .
9)After creating partition type "format fs ntfs quick" (this will wipe all your content from iPod)
10) And the last yet crucial part type "assign" and you're done with the diskpart exit diskpart by typing "exit" and exit command prompt by typing "exit" as well
11)Unplug your iPod from your computer and then plug it again.
12) Open your iTunes it should again say that your iPod is detected in Recovery Mode, press the recover button in iTunes and follow the instructions, hope you got internet connection for this or else iTunes can't restore the firmware in your iPod. (if you have firmware then you can Shift + Click on the recover mode and choose the location of the firmware).
13)After this restoration then you will be prompted to input your iPod Name and there!! You got out of recovery mode without any additional application.
For those who do not want to follow these process you can try Ziphone or try iBrickr