Error: "The file or directory is corrupted and unreadable"

This is driving me nuts.
I've had my 5th gen. iPod for over a year now, but just two days ago, when I plugged it in to my computer I received a message saying, "The iPod "name here" cannot be synced. The file or directory is corrupted and unreadable."
To solve this problem, I tried using different USB ports, restarting my iPod, and reinstalling iTunes - all to no avail. I'd really like to avoid restoring my iPod, so I haven't tried that option yet. The iPod works fine outside of adding new music. Also, I ran chkdsk and got nothing from it.
I'm very sad about this. I love my iPod and I want to be able to put new music on it! Any suggestions?

Thanks for the reply!
I downloaded the program and ran it, got to the point where it says I have errors that need to be fixed... but it appears I have to pay for the rest of the program to actually repair these errors. Is this incorrect?
If I do have to pay, then I'd like to look for an alternative... the program is $40; of course, that's cheaper than buying a new iPod, but I want to avoid that too.

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