My iPod was acting up (the clock was going out of sync, it often became unresponsive to touch) so before contacting Apple I decided to try a Backup & Restore.
I plugged in my iPod and pressed "Backup iPod". It did it fine, it seemed, and let me know when it was done. Then I clicked "Restore" and after a few of the normal errors (11 and 14) I force-restored it using the Home & Power buttons.
When it was finally restored I selected "Restore from Backup" and picked my latest Backup. That's where the problem starts... it keeps reaching 2/3 of the way done and then this error appears: "iTunes could not restore the iPod 'NAME' because the backup could not be saved on the computer."
The problem occurs with all of my backups, and persists after a computer restart and after trying a different USB port (just in case.)
I looked around at several forums and found no one with a similar problem. The error seems to usually appear for other people when the backup is actually being created, not when the iPod is being restored to a backup like it does in this case.
I hope this was enough information. Thanks to any help you guys might be able to give :)
Cheers! - Lindsay