This may be a little late, but I couldn't find the answer to my issue anywhere, so I'm posting it here. I recently received a 5th generation iPod Touch with iOS 7 installed on it. When I opened the package and turned on the device, it prompted me to select a language and network. After doing so, the device displayed a message stating that it was in the process of being activated. I waited about 30 seconds and received a message stating that the activation server is temporarily unavailable and to try back in a few minutes. I waited and tried again, only for the same result. Hooking it up to my computer and iTunes displayed a message stating that my OS was out of date and needed to be updated. After trying to update in iTunes, it confirmed that it actually was up-to-date. Restoring the device in iTunes also resulted in an error message.