Corrupted iPod Nano - restore's aren't working

Question

iTunes 7.0.2 on Windows XP Pro SP1 (long story).
G1 iPod Nano (4GB) Firmware release 1.3
I upgraded to iTunes 7.0.2 and firmware release 1.3 when they came out (a couple weeks ago). I use the device, syncing between iTunes and the iPod daily, and have had no problems with either.
Today I'm getting the message from iTunes: "iTunes has detected an iPod that appears to be corrupted. You may need to restore this iPod before it can be used with iTunes. You may also try disconnecting and reconnecting the iPod."
Disconnecting & reconnecting doesn't work.
Quitting and restarting iTunes doesn't work.
Restarting the computer doesn't work.
Hard reset on the iPod doesn't work.
Restoring the iPod using iTunes 7.0.2, runs, then I get the "Your iPod has ben restored to factory settings..." message, followed by the iPod rebooting, followed by the same message being displayed:
"iTunes has detected an iPod that appears to be corrupted. You may need..."
A couple cycles of this does nothing.
The iPod passes the internal diagnostics test.
"Settings >> About" on the iPod gives "Songs 0 / Photos 0 / Capacity 3.7 GB / Available 3.7 GB / Version 1.3 / S/N .... / Model MA107LL / Format Windows" which looks all correct to me.
Forcing it into disk mode, I can browse through the empty directory structure, and can copy files onto and off of the device. iTunes still complains that the iPod is corrupted.
I've read through 30 or 40 forum postings about corrupted iPods, and haven't been able to find one that matches my scenario.
Any suggestions?

Answer 1

Well yo have to do what wmlye says...
But if you need precise instructions, hey there are:
1) Connect your iPod nano in your PC
2) Close iTunes. DO NOT EJECT in iTunes or Windows
the iPod.
3) your iPod most be now saying in the screen "Do not
discconect"
4) Reboot yor iPod nano for doing this just press the
menu button and center button at the same time and
wait until the Black Apple logo screen appears.
5) In the same Black Apple logo screen after reboot,
before the iPod its in the main menu, press the
play/pause button and center button at the same time
until the screen Says "Do not disconnect" and the top
title says "Disk Mode".
6) Now go to Windows Start Button and click on
Execute and type there "diskmgmt.msc" (without the
quotes)
7) Find and Select your iPod in the list, now you
will see two partitions that are in your iPod find
and select the partition what says FAT32 (Always is
the most bigger of the two ;))
8) Then press the right click on the partition that
we find on the step 7, and select format, put a label
of your choice, then select FAT32 as the file system
type, leave the assignement size as default, uncheck
the quick format value and press OK.
9) There is possibility that windows says a warming
of that the iPod its still being used and more
technichal stuff, just says OK and your iPod now its
completly formated.
10) Open your iTunes and restore your iPod and wait
until the restore is complete
11) Now your iPod most be completly fixed
I hope this info will help you
Fleur-De-Lisa
PC x86-32
  Windows XP Pro  
ok so i did all that and now my ipod nano still does not come up. when i plug it in it says new volume