1GB 1st Generation iPod Nano USB Device Not Recognized on any computer

Question

I just recently received a free 1st generation 1GB iPod nano from a friend because they couldn't get it to work. I figured I'd take a crack at it and hopefully get a working, free iPod out of the deal...
It already had music loaded on it (mostly a bunch of garbage), so like anyone else in my position I proceeded to reformat the little sucker and wipe its slate clean.
Here is what happens when I try to connect the nano to ANY computer:
Here is how the nano shows up in device manager:
This was the original problem I was having with my desktop PC which is running Windows XP Home with SP2 and all the latest Windows updates. It is running iTunes 7.5.0.20, w/ latest iPod updater software version 1.2.3.
Prior to testing the 1st gen. 1GB iPod nano, I had been charging and syncing my 5th generation 60GB iPod classic on my desktop PC using the same exact cable. All of my USB ports are in working, functional condition and order. I even have “Allow the computer to turn off this device to save power” unchecked under USB Root Hub Properties.
I tried a couple different USB ports and I used another cable, no luck. So I moved on to my Fujitsu laptop running Windows Media Center Edition, all latest Windows updates, same version of iTunes and iPod software (the difference being that I DO NOT sync any iPods to it, nor do I have any music on it). SAME EXACT PROBLEM, same message bubble, same entry in device manager, and same lack of driver availability.
Thinking maybe it’s just a “PeeCee” thing I dug out my old PowerBook G4 running the ancient Mac OS 10.2. Keep in mind this thing only has a 400 MHz G4 processor, 512MB RAM, 30GB hardrive, and USB 1.1 ports. The iPod nano wouldn’t even give a hint that it existed when I plugged it in.
I have tried every single little Apple trick available. I’ve done the forced restart while connected and while not connected to the computer. I’ve done forced disk mode while connected and while not. I’ve run iTunes diagnostic tests on connected devices. I’ve messed with USB port settings. I’ve tried two different USB 2.0 iPod cables. I tested my dad’s 8GB 2nd generation iPod nano to see if it linked up with my desktop and my laptop IT DOES. I even tried my 60GB 5th gen iPod classic OVER AGAIN to see if it still worked, IT DOES.
Also, this 1st gen iPod nano will not charge when hooked to the computer through USB. When I plug it in, between the time it’s plugged in and when the “USB device recognized” bubble pops up the battery icon shows it is charging, but as soon as that bubble pops up it disappears and discontinues pretending to charge.
On my Fujitsu laptop, I uninstalled everything having to do with Apple. I uninstalled iTunes, Apple Software Update, everything. Restarting after it all of course. Then I installed the old iPod Software Updater from 6-28-2006. I was pretty sure this wouldn’t work because the iPod isn’t even recognized by the computer. In order for the iPod to work in the iPod Software Updater or iTunes it has to first be recognized at the basic Windows level. Which it isn’t…
I have done research all across the net and the only real answer I found was that the iPod Nano’s internal USB controller is dead. I’m 99% sure it has nothing to do with my laptop, desktop, USB cables, software, or drivers. What do you guys think?

Answer 1

Nope I have not figured anything out since I posted this. The closest answer I've found is that it's the internal USB controller which has gone bad. If that's the case than there is really nothing more I can do.
I did find one opening and that was the diagnostic screen. You get to it by holding down the Menu and Center buttons, as soon as the iPod resets hold down the Left and Center buttons, the iPod will beep and then it will go to a diagnostic screen. Maybe somewhere in there you can find the problem I don't know how to use it though.