This is due to modifications that are made by jailbreak apps/tweaks that won’t be undone simply by using ‘Erase all content and settings’ in the settings app. Prometheus (AKA futurerestore) is a tool created by tihmstar which allows you to restore to unsigned i OS versions as long as you have SHSH2 blobs saved for them.
It does, however, require you to already be jailbroken, or using an exploit to set some values before you will be able to use it.
i Tunes knows to offer more options in the Restore dialog based on what it finds in the "i Pod Software Updates" folder; so if you come across any older ipod update files, put them in that folder to get i Tunes to recognize them.
With the daily usage of your i Phone or i Pad, more and more data are gathered on your i OS device.
Is there a way to erase an i Pod Video 5th gen and restore it to its factory settings without i Tunes automatically updating the i Pod's software to the latest version?
On the help page on Apple's website it says that when I try to restore, it'll ask me different options on how I want to restore it (i.e. However, I didn't get this option when I tried to restore it just a few minutes ago. The key language on that page is: You will be prompted with one or more restore options that may prompt i Tunes to automatically download the latest i Pod Software.
So back to my original question: Is there a way to erase an i Pod Video 5th gen and restore it to its factory settings without i Tunes automatically updating the i Pod's software to the latest version? If you can't supply the desired version, then no -- i Tunes is always going to restore to the current version, never an older version.
Have you tried asking around for the file..here, or at other i Pod fora? You can format the disk with everyday tools, but only i Tunes can supply the "operating system" and other bits that the i Pod needs to function as a music player.