Major Issue. Won't install an iOS

Hello.
I am new to the forums here, and I decided to join after much lurking.
Yesterday I went to the apple store to get my old ipod touch 4g fixed. The person behind the counter said it is unfixable, and he offered me a NEW Ipod 4g for $150. I need an Ipod, so I took the offer.
I noticed he gave me one with 4.3.5. I wanted to get 5.1, so I made sure it was safe, and upgraded.
Now, I have not tried jailbreaking, and I dont plan on it. Itunes says I have a 3194 error. I didnt think much of it... until, I noticed I had no Ipod Name, no capacity, no software version, and no serial number! The ipod was working perfect this morning!

So, I have absolutely no idea what to do. I do not want to go back to the Apple Store, because the first time I went, I had my car smashed in because of some idiot at the Target parking lot, and because it is an hour away from me.
Also, some internet troll told me to change my host file to "hosts.isc", which I now learn turns it into a calendar, and you can't edit it. Im not stupid, I have a gaming computer I built myself. Please help.

Thanks,
Bandhead

First off, let me throw this out there:
HOW TO - Resolve iTunes Unknown Error 3194

And this:
https://discussions.apple.com/thread/2668731?start=0&tstart=0

Secondly… an iPod 4G shouldn't have iOS 4.x on it. They came with iOS 5.1. You either don't have an iPod 4G, or someone has seriously screwed with it. You can try the fix in the link above, but chances are this thing is bricked.

EDIT: I take that back. The iPod touch 4G started shipping with iOS 5.0 in October 2011. Before that, they had 4.x.