My iPod Shuffle is not WORKING! Advice please!

Hello,
I have iPodShuffle that stoped working this weekend. Just like that! When I say stop working, mean it doesn't appear in Finder or iTunes, but it mounted /Volumes/ without contents. (I also use my iPodShuffle as file storage for over a year now)
So I went to http://docs.info.apple.com/article.html?artnum=60950 (iPod missing in iTunes and Mac desktop) to get some support on how I can get my baby working again. Problem here is that latest iPod updater is in iTunes and restore instruction is assuming that it appears on my iTunes.
I want to restore to factory settings but older updaters don't seems to work (it hangs).
I've also pluged in on Windows machine and see if I see my files (since I also use it as file storage) and I do, but no contents (Keep saying insert Disk E).
I appreciate any useful advice (i don't want to hear "why did you even buy ipodshuffle thing, since I already have one).
Thank you!
Mac G5   Mac OS X (10.4.8)  

Apple has released and iPod Shuffle 1st generation restorer... and it finnaly worked for me.
http://www.apple.com/support/downloads/ipodshuffleresetutility10forwindows.html
Theres a solution for Mac OSX too (search for the link).
Now Im affraid that all the procedures I tried before this one to restore it, may have teared my iPod decreasing its timelife...
Is there a way I can assure this?

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