60gb ipod updating wont stop and wont update

I just bought this ipod. I got everything connecting. I updated itunes to the latest.
Now when I connect my ipod to the the computer and go into itunes it asks me if I want to update my ipod. So I click yes and then the ipod disconnects. The screen that says "Do not disconnect" goes away and it goes to the main menu and then soon to the "charging screen". While all this is happending itunes has a little box with a blue line moving back and forth that says "Updating 'ipod'...". Nothing is happening at all. My ipod is disconnected, yet still plugged into the computer, there is nothing on the ipod screen that says its updating and itunes is still running that little box. Its been well over 45 minutes and its still doing it and nothing is happening. I check the task manager and it says everything is running. I can go through my menues on my ipod, its surely not updating.
What the heck is going on with this thing? Why isnt it working? And what can I do to get it to work?
I try to add songs and videos and it says that I need to update my ipod software but when I do, this keeps happening. So this basically makes 300 bucks not worth being spent. I am pretty frustrated because I have been messing with this ******* things for hours. Thanks for any help.

Same exact problem here. I've had my 60gb iPod for a few months now and have been using it without any problems, but am now experiencing the same issue after downloading iTunes 7. Has there been any kind of solution to this yet?

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