Disabled and will not allow me to restore

My kid got a new iPod Touch 5 and before we could sync it to our iTunes account on our home computer she locked herself out and disabled it by repeated attempts to get in. I have tried the method of holding down the home button while plugging in the USB and iTunes starts to restore the device; however, 12 minutes into the restoration the device disconects and shows the disabled screen again and iTunes gives me the message that the device is locked out. I repeated this process 3 times but no dice. Thoughts?

Eric.