Every time I restore my itouch a little box comes up and says error 3 something but is a 4 number (exp. 5678,8687,3425,etc. etc.) is this really bad I need help!

Try to update the firmware.

The apple website actually has software you can download that can restore your iPod back to the factory settings. Also if you haven't tried it already try resetting it. You can try these instructions in this article to reset it How to Reset iPhone and iPod Touch (Hard Reset or Reboot) My Digital Life