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How to fix iPod Touch / iPhone device setup issue

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  Hooking it up to my computer and iTunes displayed a message stating that my OS was out of date and needed to be updated.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.
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