Had the same problem, I've included the reply to my other post that tells you what I did to fix mine. Let me know if it works for you. Best of luck.
hello everyone! I'm happy to say I found a solution, at least one for me that will hopefully work for everyone else. I read somewhere that it needed to be plugged in to a charger to finish the restore, but it would never work with my usb charging cable on the computer or directly in a wall. It would charge the ipod, just not turn on. What I did was plug it into my fm transmitter that I use to play the ipod through the radio. Just like that I saw it turn on, no problems at all! I heard that the usb cable runs different power then the firewire, so it may work as well. Just thought I would share with everyone, let me know if it works for you as well.
alvin